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The Following Figure Shows Equilibrium at the Industry and Firm

Question 90

Multiple Choice

The following figure shows equilibrium at the industry and firm level. Figure 9.6 The following figure shows equilibrium at the industry and firm level. Figure 9.6   In the figure, S<sub>1</sub>, S<sub>2</sub>, S<sub>3 </sub>are the market supply curves. D<sub>1</sub> and D<sub>2</sub> are the market demand curves. MC is the marginal cost curve of the firm. MR<sub>1</sub> and MR<sub>2 </sub>are the marginal revenue curves of the firm. ATC is the average-total-cost curve of the firm. According to Figure 9.6, a shift of the S curves in the graph on the left side represents: A) an increased supply because the firm produces more. B) an increased supply because more firms are producing. C) an increased supply resulting from a larger number of customers. D) an increased supply resulting from a lower demand. E) an increased supply resulting from a lower price. 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 9.6, a shift of the S curves in the graph on the left side represents:


A) an increased supply because the firm produces more.
B) an increased supply because more firms are producing.
C) an increased supply resulting from a larger number of customers.
D) an increased supply resulting from a lower demand.
E) an increased supply resulting from a lower price.

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