Assume There Are Three Hardware Stores in the Market for Hammers

question 72

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 $13,then total producer surplus would be:

• A)$9.
• B)$30.
• C)$17.
• D)$7.

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Definitions:

Balance Of Power

A situation in which power is distributed in a manner that no single entity or alliance can dominate others in negotiations or relationships.

Stable

A situation or condition that is not subject to change or likely to remain constant over time.

Ethical Conduct

The practice of adhering to moral standards and principles in behavior or decision-making, often according to a professional code or societal expectations.

Eastern Europeans

People originating from countries located in the Eastern part of Europe, including nations such as Poland, Ukraine, and Russia, among others.