Suppose a Monopolist Charges a Price Corresponding to the Intersection

Suppose a monopolist charges a price corresponding to the intersection of the marginal cost and marginal revenue curves.If the price is between its average variable cost and average total cost curves,the firm will:

A) earn an economic profit.
B) stay in operation in the short run, but shut down in the long run if demand remains the same.
C) shut down.
D) charge higher price.

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