Supply of a price-taking firm

+ profit and producer surplus

  • These graphs will allow you to drag the market price, to see how the quantity produced, profit and producer surplus vary.

The total cost function is:

  • TC=4q^2+10q+100,
    • where 100 is NOT sunk
  • A variation of the last graph, now assuming that the fixed component (100) of total cost is sunk

Again, the total cost function is: TC=4q^2+10q+100,

    • where 100 is a sunk cost (so you can think of this as a short run scenario with FC=100)


  • Another graph where you can drag market price:

The total cost function is:

  • TC=q^3-6q^2+25q+32,

where 32 is a sunk cost (so this is a "short run" scenario)