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Short-Run Producer Surplus Can Be Caluculated by Integration as (Where 0qMC(q)dqp\int _ { 0 } ^ { q ^ { * } } M C ( q ) d q - p

Question 2

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Short-run producer surplus can be caluculated by integration as (where q* is the firm's profit maximizing output level and MC(q) is its marginal cost function)


A) 0qMC(q) dqp\int _ { 0 } ^ { q ^ { * } } M C ( q ) d q - p .
B) 0q[MC(q) pq]dq\int _ { 0 } ^ { q ^ { * } } [ M C ( q ) - p q ] d q .
C) 0qpqMC(q) dq\int _ { 0 } ^ { q ^ { * } } p q - M C ( q ) d q .
D) 0q[pMC(q) ]dq\int _ { 0 } ^ { q ^ { * } } [ p - M C ( q ) ] d q .

Correct Answer:

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