The following figure shows the supply curve,S₁ ,of a firm that manufactures cell phones.
a)Calculate the firm's producer surplus when the price of one cell phone is $60.
b)If the price of cell phones increases to $100 per unit,what happens to producer surplus?
c)Suppose a fall in the price of inputs shifts the supply curve of the firm from S₁ to S₂.Calculate the new producer surplus at a price of $60 per unit.

Question

Quizplus · Accepted Answer

The Answer of The following figure shows the supply curve,S₁ ,of a firm that manufactures cell phones.
a)Calculate the firm's producer surplus when the price of one cell phone is $60.
b)If the price of cell phones increases to $100 per unit,what happens to producer surplus?
c)Suppose a fall in the price of inputs shifts the supply curve of the firm from S₁ to S₂.Calculate the new producer surplus at a price of $60 per unit.

The Following Figure Shows the Supply Curve,S₁ ,Of a Firm