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Question
LDT Products, Inc., designs and sells flannel jackets. The company is willing to sell a mens flannel jacket for as little as $45. Its main competitor is MK Outriggers, which is willing to sell the same mens flannel jacket for as little as $40. The current market price of that type of jacket is $57. What is the total producer surplus for the two firms?
a. $95
b. $12
c. $17
d. $29
e. $5
Answer
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