Of three equal descriptions are 1 minimum you would

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Unformatted text preview: scriptions are: 1. minimum you would accept to 1. produce Q* rather than Q=0 produce 2. sum of the marginal costs 2. from 0 to Q* from 3. area under the supply curve 3. from 0 to Q* from Producers usually do not have Producers to settle for MC, because demanders will pay a price of P* demanders Price Supply = MC P* B 0 Q* Quantity Producer surplus Producer The gains from trade going to the producer: Total revenue (P*BQ*0) Minus Total costs (0CBQ*) [Costs must be recovered or no production.] Total must Equals Producer...
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This note was uploaded on 12/21/2010 for the course BUSA 5311 taught by Professor Miners during the Fall '07 term at UT Arlington.

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