QUESTION 19 Please select all that are true regarding consumer surplus:

A. Consumer surplus is over the supply curve in the input market

B. Consumer surplus is sum of all PQ combinations where willingness to accept more than market price on the supply side

C. Consumer surplus is under the demand curve in the input market

D. Consumer surplus is sum of all PQ combinations where willingness to pay exceeds market price in the output market

E. Consumer surplus is affected by changes in price elasticity of supply

F. Consumer surplus is sum of all PQ combinations where willingness to pay exceeds market price on the supply side

G. Consumer surplus is an economic rent since it represents welfare greater than that gained by demand or supply

QUESTION 20 Long-run average total cost - MULTI SELECT

A. has a flat or inflection point at the firm's minimum efficient scale

B. might have a segment that indicates dis-economies of scale evidenced by a positive slope

C. might have a segment that indicates economies of scale by having a negative slope.

D. might have a portion that indicates a constant average cost over that range of output that exhibit no change in the y-axis variable

E. traces the minimum points of the short-run average total cost for each level of fixed costs

QUESTION 21 Select all that are true regarding profit:

A. Profit is the residual revenue after the cost of inputs

B. Profits do not accrue to HH

C. Profit must consider both fixed and variable costs

D. Increases in productivity increase profits, if output is increased