The more firms that are attracted to an industry, the greater will be the quantity of product supplied at any given price

Refer to Figure 4-3. What area represents producer surplus at the equilibrium price of P1?

A) D + E B) D + E + G + H C) A + B + C + D + E D) A + B + D

In the model of perfect competition, the market demand curve is found by

A) a marketing analysis. B) taking the demand curve of a "representative consumer" and expanding it by the number of consumers of the good. C) horizontally summing the demand curves of individual consumers. D) horizontally summing the supply curves of individual firms.