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4. Asmall town is served by many competing supermarkets. which have the same constant marginal cost. a) Using a diagram of the market for groceries,

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4. Asmall town is served by many competing supermarkets. which have the same constant marginal cost. a) Using a diagram of the market for groceries, show the consumer surplus, producer surplus, and total surplus. b) Now suppose that the independent supermarkets combine into one chain. Using a new diagram, show the new consumer surplus, producer surplus, and total surplus. Relative to the competitive market, what is the transfer from consumers to producers? What is the deadweight loss

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