What two conditions must hold for a competitive market to produce efficient outcomes? group of answer choices firms must maximize profits, and consumers must all pay prices equal to their maximum willingness to pay. supply curves must reflect all costs of production, and demand curves must reflect consumers' full willingness to pay. demand curves must reflect all costs of production, and supply curves must reflect consumers' full willingness to pay. firms must minimize production costs, and consumers must minimize total expenditures.

Engberg company installs lawn sod in home yards. the company’s most recent monthly contribution format income statement follows: amount percent of sales sales $ 80,000 100% variable expenses 32,000 40% contribution margin 48,000 60% fixed expenses 38,000 net operating income $ 10,000 required: 1. compute the company’s degree of operating leverage. (round your answer to 1 decimal place.) 2. using the degree of operating leverage, estimate the impact on net operating income of a 5% increase in sales. (do not round intermediate calculations.) 3. construct a new contribution format income statement for the company assuming a 5% increase in sales.