A firm's market power decreases if the price elasticity of demand for its product

If P > ATC then economics profits are positive

a. true b. false

If the quantity demanded for a product exceeds the quantity supplied, the market price will rise until

A) the quantity demanded equals the quantity supplied. The product will then no longer be scarce. B) quantity demanded equals quantity supplied. The market price will then equal the equilibrium price. C) only wealthy consumers will be able to afford the product. D) quantity demanded equals quantity supplied. The equilibrium price will then be greater than the market price.