If a firm can produce a product at a lower average cost than its competitors, it stands a better chance of earning economic profit

Refer to Figure 4-10. What is the area that represents consumer surplus after the imposition of the ceiling?

A) A + B + C B) A + B + D + F + G C) A + B + D D) A + B + D + F

Suppose Katrina always buys exactly 5 Rain Forest Bars each week, regardless of whether they are regularly priced at $1 or on sale for $0.50 . Based on this information, what is Katrina's price elasticity of demand for Rain Forest Bars?

a. 0 b. -1 c. Infinity d. Answer cannot be determined