Consumer surplus is the difference between what a consumer is willing to pay and what they actually pay for a good or service. ... The producer surplus is the difference between the actual price of a good or service–the market price–and the lowest price a producer would be willing to accept for a good. Given the following information, calculate both the producer and consumer surplus a. P- 140 = - .5q b. MC = 10 + 4q show all working and draw graph
Consumer surplus is the difference between what a consumer is willing to pay and what they actually pay for a good or service. ... The producer surplus is the difference between the actual price of a good or service–the market price–and the lowest price a producer would be willing to accept for a good. Given the following information, calculate both the producer and consumer surplus a. P- 140 = - .5q b. MC = 10 + 4q show all working and draw graph
Chapter7: Market Efficiency And Welfare
Section: Chapter Questions
Problem 1P
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Given the following information, calculate both the producer and consumer surplus
a. P- 140 = - .5q
b. MC = 10 + 4q
show all working and draw graph
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