Problem

Find the producers' surplus if the supply function for pork bellies is given by the following \[ S(q)=q^{5 / 2}+2 q^{3 / 2}+55 \] Assume supply and demand are in equilibrium at $q=25$. The producers' surplus is $\$ 59553.57$

Solution

Step 1 :The supply function for pork bellies is given by \(S(q)=q^{5 / 2}+2 q^{3 / 2}+55\).

Step 2 :The equilibrium quantity is \(q=25\).

Step 3 :The equilibrium price is given by \(S(25)\), which is \(3430.00000000000\) dollars.

Step 4 :The producer surplus is the area above the supply curve but below the equilibrium price. To find this, we need to integrate the supply function from 0 to the equilibrium quantity and subtract this value from the product of the equilibrium price and quantity.

Step 5 :By doing this, we find that the producer surplus is \(59553.5714285714\) dollars.

Step 6 :Final Answer: The producers' surplus is \(\boxed{59553.57}\) dollars.

From Solvely APP
Source: https://solvelyapp.com/problems/16749/

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