Suppose that the Yankee Cap Company is a profit-maximizing firm that has a monopoly in the production of baseball caps. The firm sells its baseball caps for $25 each. For this information, we can assume that the Yankee Cap Company is producing a level of output at which:
Select one:
A. marginal revenue equals $25.
B. average total cost equals $25.
C. marginal cost equals marginal revenue.
D. average total cost is greater than $25.