The deadweight loss represents the sum of additional consumer and ...

[bio_gurl]

The deadweight loss represents the sum of additional consumer and producer surplus should the firm produce the quantity where P = MC rather than where MR = MC.
 
  Indicate whether the statement is true or false

Question 2

If a competitive firm is in short-run equilibrium, then
 
  A) profits equal zero.
  B) it will not operate at a loss.
  C) an increase in its fixed cost will have no effect on profit.
  D) an increase in its fixed cost will have no effect on output.

[triiciiaa]

Answer to Question 1

True . If P = MC is produced, quantity increases, and the deadweight loss is turned into more CS and PS. This will increase total welfare.

Answer to Question 2

D

[bio_gurl]

Gracias!

[Bigfoot1984]

Excellent