When the existing firms in a competitive industry have different ...

[karlynnae]

When the existing firms in a competitive industry have different operating costs:
 a. the highest-cost firm in operation breaks even, while the low cost firms will earn profit.
  b. the highest-cost firm in operation breaks even, while the low cost firms leave the industry.
  c. the low cost firms earn a larger profit than the high-cost firms.
  d. the highest-cost firms will incur a deadweight loss.

Question 2

Under the long-run equilibrium, for perfectly competitive markets without any government intervention,:
 a. producer surplus is greater than consumer surplus.
  b. consumer surplus is greater than producer surplus.
  c. the sum of consumer and producer surplus is maximized.
  d. consumer surplus is maximized.
  e. producer surplus is maximized.

[ebenov]

Answer to Question 1

A

Answer to Question 2

c

[karlynnae]

Wow, this really help

[blakcmamba]

Thanks for the timely response, appreciate it