If a Monopolistically Competitive Firm Is Producing 800 Cat Condos

Multiple Choice

If a monopolistically competitive firm is producing 800 cat condos at a price of $90 and an average total cost of $75, which statement is TRUE?

A) This firm is operating in the long run and earning an economic profit.
B) This firm is operating in the long run and incurring an economic loss.
C) This firm is operating in the short run and earning an economic profit.
D) This firm is operating in the short run and incurring an economic loss.