The Following Figure Shows Equilibrium at the Industry and Firm

question 27

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.
-Since a firm is willing to sell its product at the marginal cost and since the firm receives the market price, the difference between the two is:

• A)consumer surplus.
• B)economic profit.
• C)marginal revenue.
• D)producer surplus.
• E)a shortage.

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Definitions:

Employers

Individuals or entities that hire and pay for the services of workers, responsible for providing a safe work environment and complying with employment laws.

Illegal Strikes

Work stoppages conducted by unionized workers without union leadership authorization or in violation of a contract, often deemed unlawful.

Federal and State Workers

Employees who are employed by government agencies at either the federal or state level.

AFL-CIO

The American Federation of Labor and Congress of Industrial Organizations, a national trade union center and the largest federation of unions in the United States.