THESE ARE BOTH MULTI SELECT, please select all that is true.

QUESTION 15 Please select all that are true regarding producer surplus:

A. Producer surplus is sum of all PQ combinations where willingness to accept exceeds market price on the supply side in the output market

B. Producer surplus is over the supply curve in the output market

C. Producer surplus is sum of all PQ combinations where willingness to pay exceeds market price in the output market

D. Producer surplus is sum of all PQ combinations where willingness to accept is more than market price in the input market

E. Producer surplus is an economic profit (rent) since it represents more revenue that the firm needs to breakeven

F. Producer surplus is sum of all PQ combinations where willingness to pay exceeds market price in the output markeT

G. Producer surplus is sum of all PQ combinations where willingness to accept is less than market price in the output market

H. Producer surplus is over the demand curve in the input market

QUESTION 16 Profit maximization can be inferred from MR=MC since:

A. If MR

B. revenue = costs occurs at the breakeven point

C. a marginal change in either direction will reduce profits, assuming diminishing marginal returns

D. If MR>MC more profit can be made by increasing output

E. diminishing marginal returns suggest a parabolic trade-off