Hello! I am given the following exercise for individual supply, producers surplus and and profit. I believe
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Question:
Hello! I am given the following exercise for individual supply, producers surplus and and profit. I believe I have started the problem and have stated my answers below in bold and wanted to make sure I was on the right track how to calculate these.
Consider a firm with the following cost function C(Q) = 2*Q^2 + 100
a) Derive the firm's individuals supply function p=4Q which is p = mc(y)
b) What is the producers surplus if the per-unit of the output good is p=40? Since Producers Surplus = p*y(p) - mc(y)dy = 40*10 - 4*10 = 360
c) What is the firm's profit if the per-unit price of the output good is p=40? 400 - 200 - 100 = $300 profit
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