Assume There Are Three Hardware Stores in the Market for Hammers

question 75

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 $12,then total producer surplus would be:

• A)$7.
• B)$9.
• C)$17.
• D)$30.

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Definitions:

Unreasonably Dangerous

Describes a product or condition that poses a risk of harm beyond what would be expected by the ordinary consumer.

Breach Of Warranty

The violation of a promise or guarantee made about the quality or condition of a product or service, which can give rise to legal action for damages.

Theory Of Liability

The legal concept or basis upon which a party can be held accountable for a wrong or damage in a lawsuit.

Restatement (Third) Of Torts

A compilation by legal scholars summarizing the common law of torts in the United States, aiming to clarify principles and rules.