The following figure shows equilibrium at the industry and firm level.Figure 10.6
In the figure,
S 1 , S 2 , S 3 are the market supply curves.D 1 and D 2 are the market demand curves.MC is the marginal cost curve of the firm.MR 1 and MR 2 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:

Question

The following figure shows equilibrium at the industry and firm level.Figure 10.6
  In the figure,
S 1 , S 2 , S 3 are the market supply curves.D 1 and D 2 are the market demand curves.MC is the marginal cost curve of the firm.MR 1 and MR 2 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:

Quizplus · Accepted Answer

The difference between the market price and the marginal cost of the firm is the producer surplus. This represents the additional revenue that the firm receives beyond its cost of production. Therefore, the correct answer is D) producer surplus.

The Following Figure Shows Equilibrium at the Industry and Firm