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CONSUMER SURPLUS: Make sense of these numbers and show you understand the principles at play. Suggestion: Draw this out. Products A and B are
CONSUMER SURPLUS: Make sense of these numbers and show you understand the principles at play. Suggestion: Draw this out. Products A and B are identical products sold by different companies. The cost to produce product A is $50. Product A's value is $400. Product A's price is $150. The cost to produce product B is $35. Product B's value is $200. Product B's price is $125. Assuming customers are considering purchasing the products in question, what can you say with some certainty about consumer surplus?
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