The Following Figure Shows Equilibrium at the Industry and Firm

question 54

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.
-Under the long-run equilibrium, for perfectly competitive markets without any government intervention,:

• A)producer surplus is greater than consumer surplus.
• B)consumer surplus is greater than producer surplus.
• C)the sum of consumer and producer surplus is maximized.
• D)consumer surplus is maximized.
• E)producer surplus is maximized.

---

Definitions:

Type of Isolation

Various forms of separation in biology that prevent species from mating and producing viable offspring, critical in the process of speciation.

Arctic Fox

A small mammal adapted to living in cold climates, known for its thick fur and opportunistic feeding habits.

Grey Fox

A small carnivorous mammal native to North and Central America, known for its gray fur and ability to climb trees.

Generalist

An organism that is able to thrive in a wide variety of environmental conditions and can make use of a variety of different resources.