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(Solved): 7. Producer surplus for an individual and a market Suppose the market for breakfast muffins is perfe ...



7. Producer surplus for an individual and a market Suppose the market for breakfast muffins is perfectly competitive, so sellers take the market price as given. Caroline manages a bakery that offers breakfast muffins for sale. The following graph plots Caroline's weekly supply curve (orange line). Point A represents a point along her supply curve. The price of breakfast muffins is $2.25 per muffin, which is given by the black horizontal line.



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