The following figure shows equilibrium at the industry and firm level. Figure 9.6
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.
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According to Figure 9.6,in the long run,the firm:
A) will produce at quantity 9 and price $1.50.
B) will produce at quantity 9 and price $1.
C) will produce at quantity 10 and price $1.50.
D) will produce at quantity 19 and price $1.25.
E) will shut down.
Correct Answer:
Verified
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