Use the following to answer question:
-(Table: Pumpkin Market)There are two consumers,Andy and Ben,in the market for pumpkins.Their willingness to pay for each pumpkin is shown in the table Pumpkin Market.There are two producers of pumpkins,Cindy and Diane,and their costs are also shown.The equilibrium price for pumpkins is $8 and the equilibrium quantity is 5.At the equilibrium price and quantity,total producer surplus is:
A)$0.
B)$8.
C)$11.
D)$14.

Question

Use the following to answer question: 
-(Table: Pumpkin Market)There are two consumers,Andy and Ben,in the market for pumpkins.Their willingness to pay for each pumpkin is shown in the table Pumpkin Market.There are two producers of pumpkins,Cindy and Diane,and their costs are also shown.The equilibrium price for pumpkins is $8 and the equilibrium quantity is 5.At the equilibrium price and quantity,total producer surplus is:
A)$0. 
B)$8. 
C)$11. 
D)$14.

Quizplus · Accepted Answer

Producer surplus is the difference between the market price and each producer's cost of production, summed across all units sold. Cindy and Diane's costs for the first five pumpkins are $3, $4, $5, $6, and $7, respectively. At an equilibrium price of $8, the producer surplus is $(8-3) + (8-4) + (8-5) + (8-6) + (8-7) = $14.

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