At the equilibrium price, quantity demanded is equal to quantity supplied

The benefit of a subsidy paid on each unit sold will go entirely to the sellers in the market if

A) the supply curve is perfectly inelastic. B) if the subsidy is paid to producers. C) the demand curve is perfectly elastic. D) the supply is perfectly elastic.

Refer to Figure 8.1. At the profit-maximizing level of output, total profit is

A) -$120. B) $0. C) $432. D) $600. E) $603.