Which of the following statements is (or are) correct? a. Microsoft is operating where MR=MC b. Microsoft’s profits (producer surplus) is higher than it would be if it operated where P=MC c. Microsoft’s profits per dollar of sales are higher than the profits per dollar of sales of the average American corporation d. Only (a) and (b) are correct e. Answers (a), (b), and (c) are all correct.

By 2020, automobile market analysts expect that the demand for electric autos will increase as buyers become more familiar with the technology. however, the costs of producing electric autos may increase because of higher costs for inputs (e. g., rare earth elements), or they may decrease as the manufacturers learn better assembly methods (i. e., learning by doing). what is the expected impact of these changes on the equilibrium price and quantity for electric autos?