
#1
May1513, 01:32 PM

P: 588

The formula for producer surplus is:
Income  expenses = P*Q  ∫M(Q)dQ However, shouldn't it be P*Q  (∫M(Q)dQ + FC), with FC= fixed costs? I mean, the marginal costs are just the derivative of total costs, and thus integrating them is the same as just integrating the variable costs, ignoring the fixed costs of production. 



#2
May1513, 01:54 PM

P: 588

And concerning demandcurves:
Do they represent the quantity the market is willing to buy? 


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