Figure 13-18 -Refer to Figure 13-18. The diagram demonstrates that A) in the short run, the monopolistic competitor produces an output Q_b but in the long run after it adjusts its capacity, it will produce the allocatively efficient output, Q_a. B) it is not possible for a monopolistic competitor to produce the productively efficient output level, Q_a_,because of product differentiation. C) it is possible for a monopolistic competitor to produce the productively efficient output level, Q_a_,if it is willing to lower its price from P_bto P_a. D) in the long run, the monopolistic competitor produces the minimum-cost output level, Q_a_,but in the short run its output of Q_bis not cost minimizing.

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The Answer of Figure 13-18 -Refer to Figure 13-18. The diagram demonstrates that A) in the short run, the monopolistic competitor produces an output Q_b but in the long run after it adjusts its capacity, it will produce the allocatively efficient output, Q_a. B) it is not possible for a monopolistic competitor to produce the productively efficient output level, Q_a_,because of product differentiation. C) it is possible for a monopolistic competitor to produce the productively efficient output level, Q_a_,if it is willing to lower its price from P_bto P_a. D) in the long run, the monopolistic competitor produces the minimum-cost output level, Q_a_,but in the short run its output of Q_bis not cost minimizing.

Figure 13-18 -Refer to Figure 13-18. the Diagram Demonstrates That