Refer to Figure 13-18. The diagram demonstrates that
A) in the long run, the monopolistic competitor produces the minimum-cost output level, Qa, but in the short run its output of Qb is not cost minimizing.
B) it is possible for a monopolistic competitor to produce the productively efficient output level, Qa, if it is willing to lower its price from Pb to Pa.
C) in the short run, the monopolistic competitor produces an output Qb but in the long run after it adjusts its capacity, it will produce the allocatively efficient output, Qa.
D) it is not possible for a monopolistic competitor to produce the productively efficient output level, Qa, because of product differentiation.
D
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After employing her last laborer, Rachel notices that her Average Product has decreased. True or False: Her marginal cost is greater than her average variable cost
Indicate whether the statement is true or false
Which of the following does not influence the position of the long-run aggregate supply curve?
a. The quantity of raw materials available for production b. The quantity of capital used in production c. The quality of the labor force d. The actual price level e. The size of the labor force