The figure above shows the marginal social cost curve of generating electricity and the marginal private cost curve. The difference between the marginal cost curve and the marginal social cost curve equals

If a perfectly competitive firm's marginal revenue is greater than its marginal cost, as it increases its output, its profit ________ and the price it can charge for its product ________

A) increases; does not change B) decreases; falls C) increases; falls D) decreases; rises E) decreases; does not change

Consider a particular market-clearing price and quantity under a perfectly competitive equilibrium. As the demand curve at this point becomes more inelastic, the consumer surplus in the market tends to:

A) increase. B) decrease. C) remain the same. D) We do not have enough information to answer this question.