The following figure shows equilibrium at the industry and firm level. Figure 23.6 In the figure,
S₁, S₂, S₃are the market supply curves.
D₁ and D₂ are the market demand curves.
MC is the marginal cost curve of the firm.
MR₁ and MR₂are the marginal revenue curves of the firm.
ATC is the average-total-cost curve of the firm.
According to Figure 23.6, a shift of the S curves in the graph on the left side represents:

Question

The following figure shows equilibrium at the industry and firm level. Figure 23.6

In the figure,
S₁, S₂, S₃are the market supply curves.
D₁ and D₂ are the market demand curves.
MC is the marginal cost curve of the firm.
MR₁ and MR₂are the marginal revenue curves of the firm.
ATC is the average-total-cost curve of the firm.
According to Figure 23.6, a shift of the S curves in the graph on the left side represents:

Quizplus · Accepted Answer

A shift in the S curves in the graph on the left side represents an increase in market supply. Since the question specifies that the shift is occurring at the industry level (i.e. the market supply curves), the answer is not related to a single firm producing more. Instead, it is likely due to more firms entering the market and producing more, resulting in an increase in market supply. Hence, option B is the correct answer.

The Following Figure Shows Equilibrium at the Industry and Firm