The graph shows the supply curve of haircuts and the market price of a haircut. Price (dollars per haircut) 30.00- Draw a point to show the minimum supply price of the 10th haircut. Label it 1. Market 25.00 Draw a point to show the marginal cost of the 30th price haircut. Label it 2. 20.00- Draw an arrow to show the producer surplus on the 30th haircut. 15.00- 10.00- What is the producer surplus on the 30th haircut? 5.00- The producer surplus on the 30th haircut is $ 0.00- 30 20 Quantity (haircuts per day) 10 40 50 >>> Draw only the objects specified in the question.
The graph shows the supply curve of haircuts and the market price of a haircut. Price (dollars per haircut) 30.00- Draw a point to show the minimum supply price of the 10th haircut. Label it 1. Market 25.00 Draw a point to show the marginal cost of the 30th price haircut. Label it 2. 20.00- Draw an arrow to show the producer surplus on the 30th haircut. 15.00- 10.00- What is the producer surplus on the 30th haircut? 5.00- The producer surplus on the 30th haircut is $ 0.00- 30 20 Quantity (haircuts per day) 10 40 50 >>> Draw only the objects specified in the question.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter7: Consumers, Producers, And The Efficiency Of Markets
Section7.2: Producer Surplus
Problem 2QQ
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Step 1
In a perfect competitive market, the marginal cost of the firm is shown by its supply curve.
Producer surplus is the area above the supply curve and below the market price. It is the benefit received by the seller by the production and selling of a good or service in the market.
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