-In the above figure, if the market price is $100 per ton, then the firm's producer surplus on the second ton of wheat is
A) $25.
B) $50.
C) $75.
D) $100.

Question

-In the above figure, if the market price is $100 per ton, then the firm's producer surplus on the second ton of wheat is
A) $25. 
B) $50. 
C) $75. 
D) $100.

Quizplus · Accepted Answer

Producer surplus is the difference between the market price and the marginal cost of production. If the market price is $100 and the marginal cost for the second ton is $75, the producer surplus is $100 - $75 = $25.

-In the Above Figure, If the Market Price Is $100