Use the following to answer question:
-(Table: Firm's Willingness)The table Firm's Willingness explains the relation between the number of reports a firm is willing to produce and the lowest price it is willing to accept to prepare those reports.If the price of reports is $15,how many reports will the firm produce,and what will the producer surplus be?
A)one;$0
B)three;$23
C)five;$0
D)five;$33

Question

Use the following to answer question: 
-(Table: Firm's Willingness)The table Firm's Willingness explains the relation between the number of reports a firm is willing to produce and the lowest price it is willing to accept to prepare those reports.If the price of reports is $15,how many reports will the firm produce,and what will the producer surplus be?
A)one;$0 
B)three;$23 
C)five;$0 
D)five;$33

Quizplus · Accepted Answer

At a price of $15, the firm is willing to produce five reports because this price meets or exceeds the minimum price they're willing to accept for any quantity up to five. The producer surplus is the difference between what the firm is actually paid and the minimum they're willing to accept. For each report, this surplus adds up to $33, considering the difference between the $15 price and the lower prices they were willing to accept for each of the five reports.

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