Marginal cost is constant relative to perfect competition

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Reference no: EM13995816

If a firm has market power and marginal cost is constant relative to perfect competition:

consumer surplus is lower, producer surplus is lower, and total surplus is lower.

consumer surplus is lower, producer surplus is higher, and total surplus is lower.

consumer surplus is lower, producer surplus is higher, and total surplus is higher.

consumer surplus is higher, producer surplus is lower, and total surplus is lower.

Reference no: EM13995816

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