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.

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