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.
-According to Figure 10.6, a shift of the S curves in the graph on the left side represents:
A) an increase in supply because the firm produces more.
B) an increase in supply because more firms are producing.
C) an increase in supply resulting from a larger number of customers.
D) an increase in supply resulting from a lower demand.
E) an increase in supply resulting from a lower price.
Correct Answer:
Verified
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