Assume There Are Three Hardware Stores in the Market for Hammers

question 42

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 increased from $8 to $11:

• A)total producer surplus would increase to $5.
• B)total producer surplus would decrease to $1.
• C)total producer surplus would increase to $17.
• D)total producer surplus would decrease to $7.

---

Definitions:

Null Hypotheses

A hypothesis that suggests there is no statistical significance in a given set of observations.

Multivariate ANOVA

A statistical technique used to assess the differences among group means when there are two or more dependent variables.

Dependent Variable

A factor within an experiment or model anticipated to vary as a result of modifications in independent variables.