-In the above figure, when the price of pretzels is $3 per pretzel, the total producer surplus from all the pretzels will be
A) zero.
B) less than at any other price.
C) greater than at any other price.
D) the sum of the difference between $3 and the marginal cost of all the pretzels produced.

Question

-In the above figure, when the price of pretzels is $3 per pretzel, the total producer surplus from all the pretzels will be
A) zero. 
B) less than at any other price. 
C) greater than at any other price. 
D) the sum of the difference between $3 and the marginal cost of all the pretzels produced.

Quizplus · Accepted Answer

Producer surplus is the difference between what producers are willing to accept for a good versus what they actually receive. At a price of $3 per pretzel, the producer surplus is the sum of the differences between $3 and the marginal costs of producing each pretzel sold, reflecting the extra revenue over production costs.

-In the Above Figure, When the Price of Pretzels Is