The Following Figure Shows Equilibrium at the Industry and Firm

question 49

Multiple Choice

The following figure shows equilibrium at the industry and firm level.Figure 10.6
In the figure,
S₁, S₂, S₃ are the market supply curves.D₁ and D₂ are the market demand curves.MC is the marginal cost curve of the firm.MR₁ and MR₂ are the marginal revenue curves of the firm.ATC is the average-total-cost curve of the firm.
-From a social viewpoint, when price = marginal cost:

• A)the economy as a whole would be better off if more was produced.
• B)the economy as a whole would be better off if less was produced.
• C)firms would be better off by producing less.
• D)the economic efficiency would be attained as a whole.
• E)the consumers would be better by consuming less.

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Definitions:

Negative

refers to something that is not desirable, favorable, or constructive.

Type A Personality

Characterized by a constant feeling of working against the clock and a strong sense of competitiveness.

Achievement Orientation

A personal quality characterized by a constant striving for improvement and the setting of high-performance standards based on a desire for success.

Perfectionism

A personality trait characterized by striving for flawlessness and setting excessively high performance standards, accompanied by critical self-evaluations.