Answered: Which of the following statements is…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Competitive Supermarkets

A small town is served by many competing supermarkets, which all have the same constant marginal cost.Now suppose that the independent supermarkets combine into one chain.

Which of the following statements is true about the changes that occur after the supermarkets merge? Check all that apply.

Total surplus rises.

A.Consumer surplus remains unchanged.

B.Producer surplus rises.

C.The market price increases.

D.The market quantity remains unchanged.

Monopoly
Demand
Monopoly Outcome
Consumer Surplus
Marginal Cost
Producer Surplus
Deadweight Loss
Marginal Revenue
Quantity of Groceries
Price, Cost, Revenue

(?)
Competitive Market
Demand
Competitive Outcome
Consumer Surplus
Marginal Cost
Producer Surplus
Quantity of Groceries
Price, Cost, Revenue

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