a) For a firm, how does the concept of producer surplus differ from that of profit if it has no fixed costs?
b) If the inverse demand function for toasters is: p = 60 – Q
What is the consumer surplus when the price is 30?
c) The inverse demand function a monopoly faces is: p = 100 – Q
The firm’s cost curve is: C (Q) = 10 + 5Q
What is the profit-maximizing solution?