Refer to the figure above. At what level of output does the firm maximize profits?

In the above figure, if the market quantity is restricted to 500,000 and the price is allowed to rise to set the quantity demanded equal to the quantity supplied, then the producer surplus is equal to

A) area D + area F. B) area C + area E. C) area A + area B + area C. D) area A + area B. E) area B + area D + area F.

Smaller firms tend to rely on financial intermediaries instead of financial markets for external financing due to

A) transactions costs. B) adverse selection. C) moral hazard. D) all of the above.