4.Use the following statements to answer this question:

I.

When the market price is held above the competitive price level, it is possible for the loss inconsumer surplus to be fully captured by producers.

II.

When the market price is held above the competitive level, there is no deadweight loss becauseproducer gains exactly equal consumer losses.

Select one:

a. I and II are false.

b. I is true and II is false.

c. I and II are true.

d. II is true and I is false.

5.Which of the following is NOT a necessary condition for long-run equilibrium under perfect competition?

Select one:

a. Firms have plenty of excess capacity.

b. Each firm earns zero economic profit.

c. Each firm is maximizing profit.

d. No firm has an incentive to exit the market.

e.

Price 70 $ 400 dollars per widget) 60 $ 350 S 300 40 Supply. S $ 250 $ 200 S 175 Demand, D S 150 PPLS 100 50 60 Quantity $ 50 1. of widgets D If the market is in equilibrium, total consumer and producer surplus IS: 100 200 300 400 600 600 700 800 900 1000 @(sugar/ton) 3. Select one: Refer to the above figure. The consumer surplus in an unregulated efficient market equals a. 0$ Select one: b. 800$ a. 250$ C. 100$ b. 30,625$ d. 2000$ C. 175$ e. 1200$ d. 62,500 Price e. None A Pa Qa Q2 Quantity 2. When the minimum imposed price is P2, Select one: a. the resulting surplus in the market is transferred to consumers. b. the quantity supplied is Q2 and the quantity demanded is Qa, so a surplus develops. c. the quantity supplied remains at Qo, so only quantity demanded falls to Q3. d. the quantity supplied is Qa, which results in a deadweight loss