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 and there is no other market for tickets,then total producer surplus for the five students is:
A)$50.
B)$74.
C)$100.
D)$276.

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 and there is no other market for tickets,then total producer surplus for the five students is:
A)$50. 
B)$74. 
C)$100. 
D)$276.

Quizplus · Accepted Answer

Producer surplus is the difference between what producers are willing to accept for a good versus what they actually receive. In this scenario, if tickets are sold for $50 each, each student who values the ticket less than $50 but sells it for $50 gains a surplus. The total producer surplus is the sum of these individual surpluses, which equals $74.

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