Figure 9.1 illustrates the market conditions facing Sony Company and American Company initially operating as competitors in the domestic ball bearing market.Each firm realizes constant long-run costs,MC0=AC0.
Figure 9.1.International Joint Venture

-Consider Figure 9.1.At the equilibrium price,domestic households attain ____ of consumer surplus:

Question

Figure 9.1 illustrates the market conditions facing Sony Company and American Company initially operating as competitors in the domestic ball bearing market.Each firm realizes constant long-run costs,MC0=AC0.
Figure 9.1.International Joint Venture
 
-Consider Figure 9.1.At the equilibrium price,domestic households attain ____ of consumer surplus:

Quizplus · Accepted Answer

At the equilibrium price of $12, the quantity demanded and supplied is 60 units. The area below the demand curve and above the equilibrium price represents consumer surplus. This area is a triangle with a base of 60-40 = 20 units and a height of $12-$4 = $8. Therefore, the consumer surplus is (1/2) x 20 x $8 = $80.

Figure 91 Illustrates the Market Conditions Facing Sony Company and American