Total surplus is always equal to the sum of consumer surplus and producer surplus

For a monopolistically competitive firm

A) price equals marginal revenue at all levels of output. B) price is less than marginal revenue at all levels of output. C) price is greater than marginal revenue at all levels of output except for the first unit. D) the demand curve is perfectly inelastic and marginal revenue is zero.

When the supply and/or demand curve shift, the new market clearing price is

A) reached instantaneously. B) reached only after the government intervenes in the market. C) reached after some period of adjustment. D) never reached.