A firm supplies a quantity of a good equal to Q. Each of these goods is sold at a price of P. The area beneath the supply curve for Q goods equals C. What is the firm’s producer surplus?
- AP – C
- BP × Q
- C(P × Q) – C
- D(P – C) × Q
Economics 9708 · AS & A Level · Cross elasticity of demand
A firm supplies a quantity of a good equal to Q. Each of these goods is sold at a price of P. The area beneath the supply curve for Q goods equals C. What is the firm’s producer surplus?