Figure 13-11 -Refer to Figure 13-11.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_b to 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_b is not cost minimizing.

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The Answer of Figure 13-11 -Refer to Figure 13-11.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_b to 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_b is not cost minimizing.

Figure 13-11 -Refer to Figure 13-11.The Diagram Demonstrates That