Jimmy's Java Shop Operates in a Monopolistically Competitive Market

Multiple Choice

Jimmy's java shop operates in a monopolistically competitive market.Jimmy's current output is where average costs are minimized.If this is the case, we would expect Jimmy to

A) increase output and lower price.
B) decrease output and Jimmy's average costs would increase.
C) continue production at the current level as Jimmy's is operating at his best outcome.
D) increase output and Jimmy's average costs would decrease.