If the above figure illustrated a perfectly competitive industry, the equilibrium market price would be equal to

Letters are used to represent the terms used to answer this question: price (P), quantity of output (Q), total cost (TC) and average total cost (ATC). Which of the following equations is equal to a firm's average profit?

A) P - TC B) P - ATC C) (P - ATC) × Q D) (P × Q) - TC

The above figure shows the demand and supply curves in the market for milk. Currently the market is in equilibrium

If the government establishes a $2 per gallon price ceiling to ensure that children are nourished, estimate the change in p, Q, and social welfare.