Refer to Figure 4-3. What area represents consumer surplus at the equilibrium price of P1?

A resource-extracting firm will tend to operate where

a. Marginal revenue equals marginal cost b. Average revenue equals average cost c. Marginal revenue exceeds marginal cost d. Total revenue equals total cost e. Marginal cost exceeds marginal revenue

Suppose that American firms claim that protectionism in Canada is on the rise as the Canadian government attempts to protect its infant industries with a "Buy Canadian" provision

This policy, similar to the original "Buy American" provision in the 2009 U.S. stimulus bill, is likely to cause A) Canadian companies to pay lower prices for protected products. B) exporting countries to retaliate by placing trade barriers on Canadian imports. C) most countries to reduce their own trade barriers to be able to better compete with Canadian imports at home. D) Canadian manufacturers to become more efficient.