Use the following to answer question:
-(Table: Producer Surplus)Use Table: Producer Surplus.If the tickets to The Nutty Nutcracker are free and there is no other market for tickets,the total producer surplus for the five students is:
A)$276.
B)$100.
C)$74.
D)$0.

Question

Use the following to answer question: 
-(Table: Producer Surplus)Use Table: Producer Surplus.If the tickets to The Nutty Nutcracker are free and there is no other market for tickets,the total producer surplus for the five students is:
A)$276. 
B)$100. 
C)$74. 
D)$0.

Quizplus · Accepted Answer

Producer surplus is the difference between the price at which producers are willing to sell a good and the price they actually receive. If the tickets are free, the producers (in this case, the five students) are not receiving any payment for their goods, so their producer surplus is zero.

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