-The figure above shows the supply curve for soft drink. The market price is $1.00 per soft drink. The producer surplus from the 10,000th soft drink is
A) $0.00.
B) $1.00.
C) $0.50.
D) more than $1.00.
E) None of the above answers is correct.

Question

-The figure above shows the supply curve for soft drink. The market price is $1.00 per soft drink. The producer surplus from the 10,000th soft drink is
A) $0.00. 
B) $1.00. 
C) $0.50. 
D) more than $1.00. 
E) None of the above answers is correct.

Quizplus · Accepted Answer

Producer surplus is the difference between the market price and the minimum price at which a producer is willing to sell. If the supply curve indicates that the minimum price for the 10,000th soft drink is $0.50, and the market price is $1.00, the producer surplus is $0.50.

-The Figure Above Shows the Supply Curve for Soft Drink