Principles of Microeconomics (MindTap Course List)
8th Edition
ISBN: 9781305971493
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 15, Problem 2PA
Subpart (a):
To determine
The consumer surplus , producer surplus , and total surplus.
Subpart (b):
To determine
The consumer surplus, producer surplus, and total surplus.
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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.
QUESTION 1
You are currently on your summer break. You could either enjoy your summer in Hawaii with your friends or
open a sausage stall at the local market with your mom, knowing that the market for sausages is perfectly
competitive.
1. Going to Hawaii with your friends is your explicit cost when deciding to enter the market.
2. If you and your mom decide to open a sausage stall, your demand curve as a seller is perfectly elastic.
3. If you and your mom are expecting to gain a normal profit, you should definitely not enter the market.
Which of the above statements are true?
O Only 1 is true.
Only 2 is true.
Both 1 and 2 are true.
Both 2 and 3 are true.
All three are true.
In which of the following situations would Maria's Doughnut Shop have the MOST market power?
Select one:
a. The closest doughnut shop or bakery is 25 miles away from Maria's shop.
b. There are two rival doughnut shops within three miles but no other bakeries.
c. The closest doughnut shop is 10 miles away, but there is a bakery with breakfast pastries two miles away.
d. Within three miles, there are five other doughnut shops and three bakeries that sell breakfast pastries.
Chapter 15 Solutions
Principles of Microeconomics (MindTap Course List)
Ch. 15.1 - Prob. 1QQCh. 15.2 - Prob. 2QQCh. 15.3 - Prob. 3QQCh. 15.4 - Prob. 4QQCh. 15.5 - Prob. 5QQCh. 15 - Prob. 1CQQCh. 15 - Prob. 2CQQCh. 15 - Prob. 3CQQCh. 15 - Prob. 4CQQCh. 15 - Prob. 5CQQ
Ch. 15 - Prob. 6CQQCh. 15 - Prob. 1QRCh. 15 - Prob. 2QRCh. 15 - Prob. 3QRCh. 15 - Prob. 4QRCh. 15 - Prob. 5QRCh. 15 - Prob. 6QRCh. 15 - Prob. 7QRCh. 15 - Prob. 8QRCh. 15 - Prob. 1PACh. 15 - Prob. 2PACh. 15 - Prob. 3PACh. 15 - Prob. 4PACh. 15 - Prob. 5PACh. 15 - Prob. 6PACh. 15 - Prob. 7PACh. 15 - Prob. 8PACh. 15 - Prob. 9PACh. 15 - Prob. 10PACh. 15 - Prob. 11PACh. 15 - Prob. 12PA
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