Suppose that a firm in a monopolistically competitive market is operating at its profit-maximizing point in the long run. The firm has a total cost of $800 and sells 50 units of output. Given this, we can conclude that the price of the good is _____ and the average total cost is:
A) $8; $16.
B) $16; $8.
C) $8; $8.
D) $16; $16.
Correct Answer:
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