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The following graph shows Sparkle's demand curve, marginal-revenue (MR) curve, average-total-cost (ATC) curve, marginal-cost (MC) curve, ar profit-maximizing output and price. Demand A D Price,

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The following graph shows Sparkle's demand curve, marginal-revenue (MR) curve, average-total-cost (ATC) curve, marginal-cost (MC) curve, ar profit-maximizing output and price. Demand A D Price, Cost, Revenue ATC MC MR Quantity of Sparkle ToothpasteIndicate which of the labeled areas represent consumer surplus derived from the purchase of Sparkle toothpaste or deadweight loss relative to U efficient level of output. Consumer Surplus Deadweight Loss Suppose the government required Sparkle to produce the efcient level of output. Which of the following describes what would happen to the rm and Sparkle's customers? 0 Sparkle would earn positive profit and increase production, boosting consumer surplus. O Sparkle would earn zero prot, and its customers would be just as well off as before. 0 Sparkle would earn negative prot, forcing it to shut down, and Sparkle's customers would gain no consumer surplus

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