Producers' Surplus The manufacturer of a brand of mattresses will make x hundred units available in the market when the unit price is p = 50 + 90e0.06x dollars. (a) Find the number of mattresses the manufacturer will make available in the marketplace if the unit price is set at $200/mattress. (Round your answer to the nearest integer.) mattresses (b) Use the result of part (a) to find the producers' surplus if the unit price is set at $200/mattress. (Round your answer to the nearest dollar.) $

Producers' Surplus The manufacturer of a brand of mattresses will make x hundred units available in the market when the unit price is p = 50 + 90e0.06x dollars. (a) Find the number of mattresses the manufacturer will make available in the marketplace if the unit price is set at $200/mattress. (Round your answer to the nearest integer.) mattresses (b) Use the result of part (a) to find the producers' surplus if the unit price is set at $200/mattress. (Round your answer to the nearest dollar.) $

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter2: The One Lesson Of Business

Section: Chapter Questions

Problem 9MC

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Producers' Surplus

The manufacturer of a brand of mattresses will make x hundred units available in the market when the unit price is

p = 50 + 90e^0.06x

dollars.

(a)

Find the number of mattresses the manufacturer will make available in the marketplace if the unit price is set at $200/mattress. (Round your answer to the nearest integer.)

mattresses

(b)

Use the result of part (a) to find the producers' surplus if the unit price is set at $200/mattress. (Round your answer to the nearest dollar.)

Definition Definition Producer’s gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price and up to the equilibrium quantity.

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