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A monopolistically competitive firm is producing at an output level in the short run where average total cost is $5.00, price is $5.20, marginal revenue

A monopolistically competitive firm is producing at an output level in the short run where average total cost is $5.00, price is $5.20, marginal revenue is $3.50, and marginal cost is $3.00. This firm is operating

Multiple Choice:

A) with a loss.

B) with positive profits.

C) at the break-even point.

D) at an optimal level of output.

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