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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. Use the black point (plus symbol) to show the profit-maximizing monopoly outcome. 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. Finally, use the black area (plus symbol) to shade the area representing deadweight loss. Photos - D2.JPG ? See all photos Add to Monopoly Demand Monopoly Outcome Which of the following statements is true about the changes that occur after the supermarkets merge? Check all that apply. A Consumer surplus falls. Consumer Surplus The market price decreases. Marginal Cost Price, Cast, Revenue Total surplus remains unchanged. Producer Surplus The market quantity decreases. Producer surplus falls. Deadweight Loss Marginal Revenue Quantity of Groceries

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