Homework Answers
22. MC = 10+ 2q
Now at q = 0, MC = 10
So producer surplus at price $24 and q = 4 is the area of triangle above the MC curve, which is
PS = (1/2)*(24-10)*4 = $28
22. If the firm cheat he will produce where P = MC
24 = 10+2q
14 = 2q
q = 7
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