Refer to Figure 12-5. If the market price is $20, what is the average profit at the profit-maximizing quantity?

An increase in the demand for peanuts due to changes in consumer tastes, accompanied by an increase in the supply of peanuts as a result of favorable growing conditions, will result in

A) an increase in the equilibrium quantity of peanuts and no change in the equilibrium price. B) an increase in the equilibrium price of peanuts and no change in the equilibrium quantity. C) an increase in the equilibrium price of peanuts; the equilibrium quantity may increase or decrease. D) an increase in the equilibrium quantity of peanuts; the equilibrium price may increase or decrease.

Even when earning zero profit, exporters (nearly) equalize prices across markets. ?

Answer the following statement true (T) or false (F)