Question No. 1, Part (A) For a profit-maximizing, perfectly competitive firm with marginal cost function MC(q) = q? + 3, find the following. Illustrate your results on a graph. i. Producer surplus (PS) at price p = 7 ii. Producer surplus (PS) at price p = 12 iii. Change in producer surplus (APS) resulting from price change form po = 7 to p = 12

Question No. 1, Part (A) For a profit-maximizing, perfectly competitive firm with marginal cost function MC(q) = q? + 3, find the following. Illustrate your results on a graph. i. Producer surplus (PS) at price p = 7 ii. Producer surplus (PS) at price p = 12 iii. Change in producer surplus (APS) resulting from price change form po = 7 to p = 12

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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