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.
-When firms leave a perfectly competitive market, then, other things remaining unchanged:
A) the market supply will decrease but the market price will rise.
B) both the market supply and the market price will fall.
C) both the market demand and the price will increase.
D) the market demand will decrease but the market price will rise.
E) both the market demand and the market supply will decrease.
Correct Answer:
Verified
Q80: The figure given below shows the demand
Q81: The figure given below shows the revenue
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Q83: The figure given below shows the revenue
Q84: The figure given below shows the revenue
Q86: The figure given below shows the revenue
Q87: The figure given below shows the revenue
Q88: The following figure shows equilibrium at the
Q89: The following figure shows equilibrium at the
Q90: The following figure shows equilibrium at the
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