Refer to the information provided in Figure 15.5 below to answer the question(s) that follow. 
Figure 15.5 Refer to Figure 15.5. If the Custom Sweater Shop is monopolistically competitive, what is the maximum level of average variable cost that would lead to the firm continuing to operate at the profit-maximizing level in the short run?
A. $40
B. $50
C. $46
D. The firm would continue to operate regardless of the level of variable costs.
Answer: C
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