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10. Competitive Supermarkets A small town is served by many competing supermarkets, which all have the same constant marginal cost. Use the black point (plus symbol) to show the competitive price and quantity in this market. Then use the green area (triangle symbol) to shade the area representing consumer surplus in the market for groceries, and use the purple area (diamond symbol) to shade the area representing producer Price Cost, Rev Demand Competitive Marka Quantly of Grocer Demand Now suppose that the independent supermarkets combine into one chain. Mangaly Use the black point (plus symbol) to show the profit-maximizing monopoly outcome. Then use the green area (triangle symbol) to shade the area representing consumer surplus in the market for groceries, and use the purple area (diamond symbol) to shade the area representing producer surplus. Finally, use the black area (plus symbol) to shade the area representing deadweight loss. Marginal Revenu Quantity of Groceries Marginal Cl Producer surplus falls. The market quantity decreases. Total surplus remains unchanged. Comptive Quicome Consumer surplus falls. The market price decreases. Consumer Sup Marginal Cl + Monopoly Outcome Consumer Sup Producer Sup Which of the following statements is true about the changes that occur after the supermarkets marge? Check all that apply. Deadweight L

10. Competitive Supermarkets A small town is served by many competing supermarkets, which all have the same constant marginal cost. Use the black point (plus symbol) to show the competitive price and quantity in this market. Then use the green area (triangle symbol) to shade the area representing consumer surplus in the market for groceries, and use the purple area (diamond symbol) to shade the area representing producer Price Cost, Rev Demand Competitive Marka Quantly of Grocer Demand Now suppose that the independent supermarkets combine into one chain. Mangaly Use the black point (plus symbol) to show the profit-maximizing monopoly outcome. Then use the green area (triangle symbol) to shade the area representing consumer surplus in the market for groceries, and use the purple area (diamond symbol) to shade the area representing producer surplus. Finally, use the black area (plus symbol) to shade the area representing deadweight loss. Marginal Revenu Quantity of Groceries Marginal Cl Producer surplus falls. The market quantity decreases. Total surplus remains unchanged. Comptive Quicome Consumer surplus falls. The market price decreases. Consumer Sup Marginal Cl + Monopoly Outcome Consumer Sup Producer Sup Which of the following statements is true about the changes that occur after the supermarkets marge? Check all that apply. Deadweight L

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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10. Competitive Supermarkets A small town is served by many competing supermarkets, which all have the same constant marginal cost. Use the black point (plus symbol) to show the competitive price and quantity in this market. Then use the green area (triangle symbol) to shade the area representing consumer surplus in the market for groceries, and use the purple area (diamond symbol) to shade the area representing producer surplus. Price, Cost, Revenue Demand Price, Cost, Revenue Competitive Market Quantity of Groceries Duttannd Now suppose that the independent supermarkets combine into one chain. Marginal Ha Monopoly Quantity of Groceries Use the black point (plus symbol) to show the profit-maximizing monopoly outcome. Then use the green area (triangle symbol) to shade the area representing consumer surplus in the market for groceries, and use the purple area (diamond symbol) to shade the area representing producer surplus. Finally, use the black area (plus symbol) to shade the area representing deadweight loss. Marginal Coal Producer surplus falls. The market quantity decreases. Total surplus remains unchanged. Consumer surplus falls. The market price decreases. + Compume Marginal Col Consumer Surplus Producer Surpl + Monopoly Outcome Consumer Surp Producer Surplus Which of the following statements is true about the changes that occur after the supermarkets marge? Check all that apply. Ⓒ Deadweight Loss
Transcribed Image Text:10. Competitive Supermarkets A small town is served by many competing supermarkets, which all have the same constant marginal cost. Use the black point (plus symbol) to show the competitive price and quantity in this market. Then use the green area (triangle symbol) to shade the area representing consumer surplus in the market for groceries, and use the purple area (diamond symbol) to shade the area representing producer surplus. Price, Cost, Revenue Demand Price, Cost, Revenue Competitive Market Quantity of Groceries Duttannd Now suppose that the independent supermarkets combine into one chain. Marginal Ha Monopoly Quantity of Groceries Use the black point (plus symbol) to show the profit-maximizing monopoly outcome. Then use the green area (triangle symbol) to shade the area representing consumer surplus in the market for groceries, and use the purple area (diamond symbol) to shade the area representing producer surplus. Finally, use the black area (plus symbol) to shade the area representing deadweight loss. Marginal Coal Producer surplus falls. The market quantity decreases. Total surplus remains unchanged. Consumer surplus falls. The market price decreases. + Compume Marginal Col Consumer Surplus Producer Surpl + Monopoly Outcome Consumer Surp Producer Surplus Which of the following statements is true about the changes that occur after the supermarkets marge? Check all that apply. Ⓒ Deadweight Loss
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