Suppose that the equilibrium price in the market for widgets is $5. if a law increased the minimum legal price for widgets to $6, producer surplus

a. would necessarily increase even if the higher price resulted in a surplus of widgets
b. would necessarily decrease because the higher price would create a surplus of widgets
c. might increase or decrease
d. would be unaffected

Mason farms purchased a building for $689,000 eight years ago. six years ago, repairs costing $136,000 were made to the building. the annual taxes on the property are $11,000. the building has a current market value of $840,000 and a current book value of $494,000. the building is totally paid for and solely owned by the firm. if the company decides to use this building for a new project, what value, if any, should be included in the initial cash flow of the project for this building? $0$582,000$840,000$865,000$953,000