Market is in equilibrium-calculate the consumer surplus

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Reference no: EM13795940

Assume that the market for Coca-cola in your area is perfectly competitive, with Demand P= 11-0.1Qd and supply P= 1+ 0.1Qs. Each firm that sells Coca-cola is indentical, with Total Cost TC= 1+0.5Q+2Q? Which gives Marginal Cost MC= 0.5+4Q. Currently the market is in equilibrium, and Coca-cola for $6 a unit and $50 units are sold.

a. graph the market

b. Identify the consumer and producer surplus on the graph.

c. Calculate the consumer surplus.

Reference no: EM13795940

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