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The Accompanying Graph Shows the Long-Run Supply and Demand Curves

Question 211

Multiple Choice

The accompanying graph shows the long-run supply and demand curves in a purely competitive market. We know that in this market, the marginal A) cost equals marginal benefit at P₁ Q₁. B) benefit exceeds marginal cost at the output level of Q₂. C) cost exceeds marginal benefit at the output level of Q₂. D) benefit equals marginal cost at all points on the supply curve. The accompanying graph shows the long-run supply and demand curves in a purely competitive market. We know that in this market, the marginal


A) cost equals marginal benefit at P₁ Q₁.
B) benefit exceeds marginal cost at the output level of Q₂.
C) cost exceeds marginal benefit at the output level of Q₂.
D) benefit equals marginal cost at all points on the supply curve.

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