The following graph shows Crest's demand curve, marginal-revenue (MR) curve, average-total-cost (ATC) curve, marginal-cost (MC) curve, and profit maximizing output and price. (?) Demand Price, Cost, Revenue ATC MR Quantity of Crest Toothpaste Indicate which of the labeled areas represent consumer surplus derived from the purchase of Crest toothpaste or deadweight loss relative to the efficient level of output A B C D Consumer Surplus Deadweight Loss DO0 Suppose the government required Crest to produce the efficient level of output. Which of the following describes what would happen to the firm and Crest's customers? O Crest would earn negative profit, forcing it to shut down, and Crest's customers would gain no consumer surplus. O Crest would earn zero profit, and its customers would be just as well off as before. O Crest would earn positive profit and increase production, boosting consumer surplus.8b The following graph shows the marginal-cost (MC) curve and the average-total-cost (ATC) curve for a peanut-butter-producing firm. It also shows the demand curve and marginal-revenue (MR) curve faced by a firm operating in a monopolistically competitive environment. On the following graph, use the black point (plus symbol) to show the profit-maximizing output and price for a typical firm operating in a monopolistically competitive environment. (?) Demand Profit Max Under MC Perfect Comp. Outcome Price, Cost, Revenue ATC MR Quantity One day, consumer advocate Skippy lif discovers that all brands of peanut butter in Nutville are identical. Thereafter, the market becomes perfectly competitive and again reaches its long-run equilibrium. On the previous graph, use the grey point (star symbol) to show the market price in this case and the quantity produced by each firm. Which of the following statements are true for a typical firm in this market given the transition from monopolistic competition to perfect competition? Check all that apply. O Average total cost remains unchanged. O The price decreases. O) The quantity decreases. O Profit remains unchanged. O Marginal cost decreases.9b A small town is served by many competing supermarkets, which all have the same constant marginal cost. Use the black point (plus symbol) to show the competitive price and quantity in this market. Then use the green area (triangle symbol) to shade the area representing consumer surplus in the market for groceries, and use the purple area (diamond symbol) to shade the area representing producer surplus. Competitive Market Demand Competitive Outcome A Consumer Surplus Marginal Cost Price, Cost, Revenue Producer Surplus Quantity of Groceries Now suppose that the independent supermarkets combine into one chain. Use the black point (plus symbol) to show the profit-maximizing monopoly outcome. Then use the green area (triangle symbol) to shade the area representing consumer surplus in the market for groceries, and use the purple area (diamond symbol) to shade the area representing producer surplus. Finally, use the black area (plus symbol) to shade the area representing deadweight loss.Monopoly Demand Monopoly Outcome A Consumer Surplus Marginal Cost Price, Cost, Revenue Producer Surplus Deadweight Loss Marginal Revenue Quantity of Groceries Which of the following statements is true about the changes that occur after the supermarkets merge? Check all that apply. O Total surplus remains unchanged. O The market price decreases. Consumer surplus falls. O The market quantity decreases. O Producer surplus falls