Figure: Earned Producer Surplus Refer to the figure. Calculate the total dollar amount of producer surplus earned in this market at a price of $100.

Question

Figure: Earned Producer Surplus  Refer to the figure. Calculate the total dollar amount of producer surplus earned in this market at a price of $100.

Quizplus · Accepted Answer

To calculate the total dollar amount of producer surplus earned in this market at a price of $100, we need to find the difference between the equilibrium price ($100) and the minimum price at which producers are willing to supply the product (which is the supply curve at quantity 0). This difference is the producer surplus per unit, which in this case is $50 ($100 - $50). The market is producing 100 units at the price of $100, so the total producer surplus is 100 x $50 = $5,000.

Figure: Earned Producer Surplus Refer to the Figure