QUESTION 20Shalimar company incurs a cost of $50 to produce a jacket and on the other hand Dilshad company incurs a cost of $7o to produce a jacket. In which of the following situations both companies willexperience a gain in the producer surplus?In the case when the price of jacket increase from $40 to $55.Oa.In the case when the price of jacket increase from $55 to $70.Ob.In the case when the price of jacket increase from $55 to $75.Oc.All the other prices indicated in other options will cause loss in producer surplus.O d. QUESTION 12Consumer surplus is thea. amount of a good consumers get without paying anything.b. amount a consumer is willing to pay minus the market price.c. value of a good to a consumer.d. market price minus what the consumer is willing to pay.

Consumer surplus represents the additional benefit or value that consumers receive beyond what they…

Consumer surplus is the a. amount of a good consumers get without paying anything. b. amount a consumer is willing to pay minus the market price. c. value of a good to a consumer. d. market price minus what the consumer is willing to pay.

Consumer surplus is the a. amount of a good consumers get without paying anything. b. amount a consumer is willing to pay minus the market price. c. value of a good to a consumer. d. market price minus what the consumer is willing to pay.

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Firms In Competitive Markets

Section: Chapter Questions

Problem 9PA

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