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nakungth nakungth
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7 years ago
Suppose a firm has market power and faces a downward sloping demand curve for its product, and its marginal cost curve is upward sloping.  If the firm reduces its price, then:
A) producer surplus increases due to new buyers, but the producer surplus from existing customers declines due to the lower price.
B) the change in producer surplus is transferred to consumers.
C) the increase in consumer surplus is only due to the increase in quantity demanded.
D) the sum of producer and consumer surplus remains the same, but surplus value is transferred from the producer to consumers.
Textbook 
Microeconomics

Microeconomics


Edition: 8th
Author:
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CanihCanih
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#1
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7 years ago
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nakungth Author
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7 years ago
Just got PERFECT on my quiz
Smair87
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Yesterday
Thank you, thank you, thank you!
lolaww
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2 hours ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
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