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.

Question

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.

Quizplus · Accepted Answer

The Answer of  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.

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