A small town is served by many competing supermarkets, which all have the same constant marginal cost.

Use the black point (plus symbol) to show the competitive price and quantity in this market. Then use the green area (triangle symbol) to shade the area representing consumer surplus in the market for groceries, and use the purple area (diamond symbol) to shade the area representing producer surplus.

Competitive Market Demand + Competitive Outcome A Consumer Surplus Marginal Cost Price, Cost, Revenue Producer Surplus Quantity of Groceries Now suppose that the independent supermarkets combine into one chain.Monopoly Demand Monopoly Outcome A Consumer Surplus Marginal Cost Price, Cost, Revenue Producer Surplus Deadweight Loss Marginal Revenue Quantity of GroceriesWhich of the following statements is true about the changes that occur after the supermarkets merge? Check all that apply. The market price increases. Consumer surplus remains unchanged. The market quantity remains unchanged. Total surplus rises. Producer surplus rises