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Homework answers / question archive / Each of 1,000 identical firms in the competitive peanut butter industry has a short-run marginal cost curve given by SMC = 4 + Q
Each of 1,000 identical firms in the competitive peanut butter industry has a short-run marginal cost curve given by
SMC = 4 + Q.
If the demand curve for this industry is
P= 20 - 3q/1000
what will be the short-run loss in producer and consumer surplus if an outbreak of aflatoxin suddenly makes it impossible to produce any peanut butter?
Producer surplus: $
Consumer surplus: $