Find the Producer's Surplus for a Product with Demand Function

question 111

Multiple Choice

Find the producer's surplus for a product with demand function and supply function where p is in millions of dollars and x is the number of thousands of units. Round your answer to one decimal place. ​

• A)37.5 million dollars
• B)26.5 million dollars
• C)21.0 million dollars
• D)22.5 million dollars
• E)23.5 million dollars

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Definitions:

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for competition on factors other than just price, such as quality and marketing.

Bertrand Model

Oligopoly model in which firms produce a homogeneous good, each firm treats the price of its competitors as fixed, and all firms decide simultaneously what price to charge.

Duopolists

Firms or entities that operate in a duopoly, a market structure characterized by only two producers or sellers of a particular good or service.

Nash Model

A concept in game theory where each participant's strategy is optimal given the strategies of all other participants, leading to a situation of equilibrium.