A. Select all of the answers that aretrue. That is, there may be more than one correct statement.

In the long run of a perfectly competitive market...

-Accounting profits (i.e.,revenues minus financial costs) for each firm equal zero

-Average total cost is minimized

-Market demand is perfectly elastic

-Consumer surplus is minimized

-Changes in demand will not change the market price

-Average fixed cost is increasing in quantity

B. Select all of the answers that aretrue. That is, there may be more than one correct statement.

Which of the following can result in deadweight losses?

-When a monopolist sets the market price

-When the market demand curve shiftsin a perfectly competitive market

-When there is an asymmetryin the information held by buyers and sellers

-When marginal cost curve shifts in a perfectly competitive market

-When a non-binding price ceiling is implemented