Each of 1,000 identical firms in the competitive peanut butter industry has a short-run marginal cost curve given by SMC = 5 + Q. If the demand curve for this industry is 20 P = 14 – 1,000 what will be the short-run loss in producer and consumer surplus if an outbreak of aflatoxin suddenly makes it impossible to produce any peanut butter? Instructions: Round your answers to the nearest whole number. Producer surplus: $ Consumer surplus: $

Each of 1,000 identical firms in the competitive peanut butter industry has a short-run marginal cost curve given by SMC = 5 + Q. If the demand curve for this industry is 20 P = 14 – 1,000 what will be the short-run loss in producer and consumer surplus if an outbreak of aflatoxin suddenly makes it impossible to produce any peanut butter? Instructions: Round your answers to the nearest whole number. Producer surplus: $ Consumer surplus: $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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