Find the producer surplus for a profit maximising firm with the marginal cost function , when price is .
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4 marks, −1MicroeconomicsPerfect competitionConsumer and producer surplus and deadweight lossModerateabout 3 min
JNU SIS 2011 Question 24: Perfect competition
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Find the producer surplus for a profit maximising firm with the marginal cost function MC(q) = 2q + 1, when price is p₀ = 10. (A) 22· 50 (B) 25· 20 (C) 20· 25 (D) 22· 20
Also written as: Find the producer surplus for a profit maximising firm with the marginal cost function MC(q) = 2q + 1, when price is p_0 = 10.
Perfect competition has come up 115 times in 7 exams since 2006.
What this question tests
This question is on Consumer and producer surplus and deadweight loss, part of Perfect competition in Microeconomics.
Measuring gains from trade in a competitive market and the loss when it is distorted.
TestStop has 15 past-paper questions on this subtopic.
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