A market economy produces the optimal amount of each good at ...

[stephzh]

A market economy produces the optimal amount of each good at least cost where:
 
  A) P > ATC.
  B) P = ATC.
  C) P > AVC.
  D) P = MR.

Question 2

Refer to the figure above. After the market changes from perfectly competitive to a monopoly:
 
  A) the social surplus decreases.
  B) the market price decreases.
  C) the deadweight loss decreases.
  D) the consumer surplus increases.

[bd5255]

Answer to Question 1

B

Answer to Question 2

A