5) (KEY QUESTION) A small town is served by many perfectly competing supermarkets, which have constant marginal cost.
5) (KEY QUESTION) A small town is served by many perfectly competing supermarkets, which have constant marginal cost.
a. Using a diagram of the market for groceries, show the (long-run) equilibrium price and quantity.
b. Mark the deadweight loss in the picture and explain what it is.
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Order Paper Nowc. Show the consumer and producer surplus in the figure, and explain what these terms mean.