Suppose that purely competitive firms producing cashews dis- cover that P exceeds MC. Is their combined output of cashews too little, too much, or just right to achieve allocationeffi- ciency? In the long run, what will happen to the supply of ca- shews and the price of cashews? Use a supply and demand diagram to show how that response will change the combined amount of consumer surplus and producer surplus in the market for cashews. LO11.4