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What is the firm short run producer surplus

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Reference no: EM132272908

Suppose a firm engaged in the illegal copying of DVD's has a daily short run total cost function given by:

STC = q2 + 25

A. If pirated DVD's sell for $20, how many will the firm copy each day? What will its profits be?

B. What is the firm's short run producer surplus at P=20?

C. Develop a general expression for this firm's producer surplus as a function of the price of pirated DVD's.

Reference no: EM132272908

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