In a market for kitchen bags, the highest price consumers are willing to pay is $ per pack and the lowest price producers are willing to accept is $8 per pack. Th competitive market equilibrium price is $10 per pack, at which 24 million packs sold. Suppose one company monopolizes the production of kitchen bags. As a the price rises to $12 per pack and the quantity sold decreases to 18 million pa The cost to producers of the last pack sold is $9.50. Assuming that both demar supply curves are straight lines, the consumer surplus in this market is $ A million, the producer surplus is $ A million, the total ga from trade are $ A million, and the deadweight loss is $ A million.
In a market for kitchen bags, the highest price consumers are willing to pay is $ per pack and the lowest price producers are willing to accept is $8 per pack. Th competitive market equilibrium price is $10 per pack, at which 24 million packs sold. Suppose one company monopolizes the production of kitchen bags. As a the price rises to $12 per pack and the quantity sold decreases to 18 million pa The cost to producers of the last pack sold is $9.50. Assuming that both demar supply curves are straight lines, the consumer surplus in this market is $ A million, the producer surplus is $ A million, the total ga from trade are $ A million, and the deadweight loss is $ A million.
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter13: Between Competition And Monopoly
Section: Chapter Questions
Problem 5DQ
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![In a market for kitchen bags, the highest price consumers are willing to pay is $18
per pack and the lowest price producers are willing to accept is $8 per pack. The
competitive market equilibrium price is $10 per pack, at which 24 million packs are
sold. Suppose one company monopolizes the production of kitchen bags. As a result,
the price rises to $12 per pack and the quantity sold decreases to 18 million packs.
The cost to producers of the last pack sold is $9.50. Assuming that both demand and
supply curves are straight lines, the consumer surplus in this market is $
A million, the producer surplus is $
A million, the total gains
from trade are $
A million, and the deadweight loss is $
A million.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F31972ad7-8d9f-4370-a1a0-a64655a6e2af%2F31ca88e2-0d89-44ed-8c0b-77998ea8518b%2F1u1hb7g_processed.jpeg&w=3840&q=75)
Transcribed Image Text:In a market for kitchen bags, the highest price consumers are willing to pay is $18
per pack and the lowest price producers are willing to accept is $8 per pack. The
competitive market equilibrium price is $10 per pack, at which 24 million packs are
sold. Suppose one company monopolizes the production of kitchen bags. As a result,
the price rises to $12 per pack and the quantity sold decreases to 18 million packs.
The cost to producers of the last pack sold is $9.50. Assuming that both demand and
supply curves are straight lines, the consumer surplus in this market is $
A million, the producer surplus is $
A million, the total gains
from trade are $
A million, and the deadweight loss is $
A million.
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