A firm's producer surplus equals its economic profit when
A) average variable costs are minimized.
B) average fixed costs are minimized.
C) marginal costs equal marginal revenue.
D) fixed costs are zero.
E) total revenues equal total variable costs.
Question 2
Refer to Scenario 17.4. If the flood control system were in place, the firm could insure against a flood for an annual premium of
A) 5,000.
B) 10,000.
C) 100,000.
D) 200,000.
E) 1,000,000.
