A graph of Price versus Quantity shows a straight line, M R$,$ decreasing linearly, a second straight line, Demand, decreasing linearly above M R and at a slightly slower rate, a third straight line, M C$,$ increasing linearly, and a curved line, A T C$,$ decreasing at the beginning and increasing at the end. At Q $=100,$ M C $=$ M R at $$90,$ and this line hits the demand curve at $$140,$ which coincides with the value of A T C at that quantity. At Q $=133\mathrm{.}33,$ the value of M R is $$56\mathrm{.}67$ and Demand $=$ M C at $$123\mathrm{.}33$

Refer to Figure $16-5.$ Given this firm's cost curves, if the firm were perfectly competitive rather than monopolistically competitive, then in a long$-$run equilibrium it would produce

a$.$ less than $100$ units of output.

b$.$ more than $133\mathrm{.}33$ units of output.

c$.$ between $100$ and $133\mathrm{.}33$ units of output.