Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
Figure: Monopolistic Competition III
-(Figure: Monopolistic Competition III) The figure Monopolistic Competition III shows the demand, marginal revenue, marginal cost, and average total cost curves for Pat's Pizza Parlor, a monopolistic competitor in the food-to-go industry. The optimal level of output for Pat's Pizza Parlor is _____ and the profit-maximizing price is _____.

A) 350; $3.50
B) 350; $7.00
C) 590; $5.60
D) 500; $5.50