Consider a firm with no fixed costs and a marginal cost function equal to ????????(????) = 2????. Assume
this firm is a price-taker and that the market price it faces decreases from ???? = $100 to ????'= $90.
Which of the following alternatives is correct?
(a) This firm’s producer surplus decreases from $5,000 to $4,500
(b) This firm’s producer surplus increases from $2,500 to $2,600
(c) This firm’s profit decreases from $2,500 to $2,025
(d) This firm’s profit increases from $5,000 to $5,200