Refer to the Graph Shown

Refer to the graph shown. The monopolistically competitive firm represented is in:

A) both short-run and long-run equilibrium because price equals marginal cost at the profit-maximizing output level.
B) both short-run and long-run equilibrium because price exceeds average total cost at the profit-maximizing output level.
C) short-run equilibrium because price exceeds average total cost at the profit-maximizing output level.
D) long-run equilibrium because economic profits are zero at the profit-maximizing output level.

Correct Answer:

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