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.
-Under the long-run equilibrium, for perfectly competitive markets without any government intervention,:

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.
-Under the long-run equilibrium, for perfectly competitive markets without any government intervention,:

Quizplus · Accepted Answer

In a long-run equilibrium in a perfectly competitive market without any government intervention, the industry is in a state where the quantity demanded equals quantity supplied at the equilibrium price, which is where the market demand and market supply curves intersect. At this point, both consumer and producer surplus are maximized, and the sum of consumer and producer surplus is maximized, which is known as the social surplus. Therefore, the correct answer is option C.

The Following Figure Shows Equilibrium at the Industry and Firm