What is the producer surplus

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Suppose that the supply curve is Qs = −15 + P and the equilibrium price is 25. (a) What is the producer surplus? (b) Construct a graph for this Price Taking firm showing the demand curve, supply curve and producer surplus. (c) Calculate Q*, the inverse of the supply curve (i.e. P(Q)), then from the inverse supply function (and give P*=25 and Q* you calculated) find again the producer surplus.

Reference no: EM131082133

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