![subject](/tpl/images/cats/en.png)
. A small 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 super
markets 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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Answers: 3
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. A small town is served by many competing
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