Assume There Are Three Hardware Stores in the Market for Hammers

question 8

Multiple Choice

Assume there are three hardware stores in the market for hammers and that all three markets produce a single,standard model hammer.House Depot is an enormous mass producer of hammers and can offer a hammer for sale for a minimum of $7.Lace Hardware is a franchise and can offer the hammer for sale for a minimum of $10.Bob's Hardware store is a family owned and operated,independent hardware store and can offer hammers at a minimum price of $13.
Given the scenario described,if the market price of hammers was $10,then:

• A)only House Depot would gain surplus by supplying hammers to the market.
• B)only House Depot and Lace Hardware would gain surplus by supplying hammers to the market.
• C)House Depot,Lace Hardware,and Bob's Hardware would all supply hammers to the market,but Bob's would lose surplus.
• D)only House Depot and Bob's Hardware would supply hammers to the market.

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Definitions:

Pitch

The perceived frequency of a sound, determining its musical note or tone.

Pinna

The visible part of the ear that is outside the head, which captures sound waves and directs them into the ear canal.

Middle Ear

The part of the ear that channels and amplifies sound through the eardrum, hammer, anvil, and stirrup to the inner ear.

Eardrum

A slim barrier that divides the external ear from the internal ear and oscillates when influenced by sound vibrations.