Use the following to answer question:
-(Table: Producer Surplus)Use Table: Producer Surplus.If the price of a ticket to see The Nutty Nutcracker is $50,then Dudley's producer surplus is:
A)$0.
B)$25.
C)$60.
D)$240.

Question

Use the following to answer question: 
-(Table: Producer Surplus)Use Table: Producer Surplus.If the price of a ticket to see The Nutty Nutcracker is $50,then Dudley's producer surplus is:
A)$0. 
B)$25. 
C)$60. 
D)$240.

Quizplus · Accepted Answer

Producer surplus is the difference between the market price and the minimum price at which a producer is willing to sell a good. If Dudley is willing to sell tickets at a lower price than $50, his producer surplus is the difference between $50 and his minimum selling price. Without the specific table data, we typically assume the correct answer based on common economic principles. Assuming Dudley's minimum selling price is $25 (as an example), his producer surplus would be $25 ($50 - $25).

Use the Following to Answer Question