The following figure shows equilibrium at the industry and firm level. Figure 23.6
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 23.6, an upward shift of the MR curve will result from:
A) a larger demand.
B) more firms in the industry.
C) fewer firms in the industry.
D) a smaller demand.
E) the firm being more efficient.
Correct Answer:
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