Compare the producer and consumer surplus

Reference no: EM131919266

Problem

Suppose a perfectly competitive market for hotdog stands in New York City becomes monopolistically competitive when gourmet, discount, and ethnic hot-dog retailers show up, making each cart slightly different. If hot dogs from different stands are now imperfect substitutes and there are numerous carts in the city, compare the producer and consumer surplus and total social welfare before and after the change.

Reference no: EM131919266

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