The following question is about the effect that demand and supply elasticities have on the consumer and producer surpluses. Assuming that the market equilibrium output and price remain unchanged, which one of the following statements is correct?

Which one of the following markets can generally be considered to be competitive?

Consider the following plot representing a firm selling cars. Q represents the quantity of cars they’re selling and P represents the price they can charge. The plot shows three isoprofit curves and the demand curve they face. At the profit-maximizing point, which of the following is true?

Consider the following plot representing a firm selling cars. Q represents the quantity of cars they’re selling and P represents the price they can charge. The plot shows three isoprofit curves and the demand curve they face. At the profit-maximizing point, which of the following is true?

Suppose a firm’s profit function is given by the equation:

What is the firm’s average cost when Q=5?

The figure shows a demand curve for Cheerios. Based on this figure, which of the following statements is correct?

Consider the following plot representing a firm selling cars. Q represents the quantity of cars they’re selling and P represents the price they can charge. The plot shows three isoprofit curves and the demand curve they face. At the profit-maximizing point, which of the following is true?

Consider the following plot representing a firm selling cars. Q represents the quantity of cars they’re selling and P represents the price they can charge. The plot shows three isoprofit curves and the demand curve they face. At the profit-maximizing point, which of the following is true?

Suppose a firm’s profit function is given by the equation:

What is the firm’s average cost when Q=5?

The figure shows a demand curve for Cheerios. Based on this figure, which of the following statements is correct?