Toby Operates a Small Deli Downtown

Multiple Choice

Toby operates a small deli downtown.The deli industry is monopolistically competitive.Toby tells you that his and every other deli in town is producing the quantity that minimizes their average total cost.Assuming the delis are maximizing profits, you know that the:

A) number of delis will soon decrease.
B) number of delis will soon increase.
C) delis' prices equal their average total costs.
D) delis have excess capacity.