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

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter22: Perfect Competition

Section: Chapter Questions

Problem 2QP

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