Use the following to answer questions:
-(Table: Producer Surplus) Look at the table Producer Surplus. If the tickets to The Nutty Nutcracker are free and there is no other market for tickets, the total producer surplus for the five students is:
A) $276.
B) $100.
C) $74.
D) $0.

Question

Use the following to answer questions: 
-(Table: Producer Surplus) Look at the table Producer Surplus. If the tickets to The Nutty Nutcracker are free and there is no other market for tickets, the total producer surplus for the five students is:
A) $276. 
B) $100. 
C) $74. 
D) $0.

Quizplus · Accepted Answer

Producer surplus is the difference between what producers are willing to accept and what they actually receive. If tickets are free, producers receive $0, which is equal to what they are willing to accept (since they are giving them away for free), resulting in a producer surplus of $0.

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