Question: Assume that you are willing to pay 1 100 for a
Assume that you are willing to pay $1,100 for a new personal computer that has all the “bells and whistles.” On the Internet, you buy one for the bargain price of $900. Unbeknownst to you, the Internet retailer’s marginal cost was only $750. How much consumer surplus, producer surplus, and net addition to social welfare stems from your purchase? Explain.
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