00:01
So in this question, we are given a supply function in the sales level, and we want to find the producer surplus for the given values.
00:08
So our supply function is given by p is equal to 25, e to the point zero zero to q, and the sales level is 600.
00:27
So i just want to sketch this out graphically.
00:30
So here we have 600.
00:39
The supply function, if q is zero, then we cross the axis.
00:46
So here's p and q, cross the p axis at 25.
00:50
So our supply function looks something like this, this is p.
00:58
Some exponential, increasing exponential function.
01:01
And i'll draw this little region here.
01:08
The producer surplus is this green shaded region that i'm drawing.
01:14
It's the area sort of below the value 600 and above the supply curve.
01:22
So we're going to use an integral to find this.
01:26
The only thing we need, so we know, what are we integrating? it'll be the function, the constant function, 600 minus our supply function.
01:34
That'll give us this green area.
01:35
But we need the limits of integration...