A consumer values a car at $20,000 and it costs a producer $15,000 to make the same

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A consumer values a car at $20,000 and it costs a producer $15,000 to make the same car. If the transaction is completed at $18,000, the transaction will generate

a. No surplus.

b. $5,000 worth of seller surplus and unknown amount of buyer surplus.

c. $2,000 worth of buyer surplus and $3,000 of seller surplus.

d. $3,000 worth of buyer surplus and unknown amount of seller surplus

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Managerial Economics

ISBN: 9781337106665

5th Edition

Authors: Luke M. Froeb, Brian T. McCann, Michael R. Ward

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Question Posted: Jul 08, 2020 02:36 AM

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A consumer values a car at $20,000 and it costs a producer $15,000 to make the same

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C 2000 worth of buyer surplus and 3000 of seller surplus corre...View the full answer

Managerial Economics

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