Calculus with Applications (10th Edition)

Published by Pearson
ISBN 10: 0321749006
ISBN 13: 978-0-32174-900-0

Chapter 7 - Integration - 7.5 The Area Between Two Curves - 7.5 Exercises - Page 406: 32

Answer

The producers’ surplus is given by: $$ \begin{aligned} \text {Producers’ surplus }&=\int_{0}^{q_{0}}[p_{0}-S(q)] d q\\ &=1999.54 \end{aligned} $$

Work Step by Step

Suppose the supply function for concrete is given by $$ S(q)=100+3q^{\frac{3}{2}}+q^{\frac{5}{2}} $$ equilibrium supply $p_0$ is when $q=9$, so we have: $$ \begin{aligned} p_0=S(9)&=100+3(9)^{\frac{3}{2}}+(9)^{\frac{5}{2}}\\ &=424 \end{aligned} $$ Now, we know that: $$ \text {Producers’ surplus }=\int_{0}^{q_{0}}[p_{0}-S(q)] d q $$ The producers’ surplus is given by: $$ \begin{aligned} \text {Producers’ surplus }&=\int_{0}^{q_{0}}[p_{0}-S(q)] d q\\ &=\int_{0}^{9}\left[424-\left(100+3 q^{3 / 2}+q^{5 / 2}\right)\right] d q\\ &=\left.\left(324 q-\frac{6}{5} q^{5 / 2}-\frac{2}{7} q^{7 / 2}\right)\right|_{0} ^{9}\\ &=\left[\left(324(9)-\frac{6}{5}(9)^{5 / 2}-\frac{2}{7}(9)^{7 / 2}\right)-0\right]\\ &=2916-\frac{1458}{5}-\frac{4374}{7}\\ &=1999.54 \end{aligned} $$
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