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

question 178

Multiple Choice

Figure 13-18

-Refer to Figure 13-18.The diagram demonstrates that

• A)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.
• B)it is not possible for a monopolistic competitor to produce the productively efficient output level, Qₐ, because of product differentiation.
• C)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.
• D)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.

---

Definitions:

African Diaspora

Refers to the communities throughout the world that are descended from the historic movement of peoples from Africa, predominantly to the Americas, Europe, Asia, and the Middle East, through the transatlantic slave trade, migration, and other means.

Anticommunist Hysteria

A period marked by heightened fear and suspicion of communist influence on society, often leading to irrational accusations and violations of civil liberties.

Joseph McCarthy

A U.S. Senator known for his campaign against alleged communists in the government and military during the early 1950s, a period known as the McCarthy era.

American Communist Party

A political party in the United States that advocates for a Marxist-Leninist form of government and socialism, established in 1919.