The Accompanying Graph Shows the Long-Run Supply and Demand Curves

question 211

Multiple Choice

The accompanying graph shows the long-run supply and demand curves in a purely competitive market. We know that in this market, the marginal

• A)cost equals marginal benefit at P₁ Q₁.
• B)benefit exceeds marginal cost at the output level of Q₂.
• C)cost exceeds marginal benefit at the output level of Q₂.
• D)benefit equals marginal cost at all points on the supply curve.

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