-At the competitive market outcome in the above figure, the
A) producer surplus is equal to $480 million.
B) total producer surplus from turkey sales is zero.
C) sum of consumer and producer surpluses from turkey is $640 million.
D) All of the above answers are correct.

Question

-At the competitive market outcome in the above figure, the
A) producer surplus is equal to $480 million. 
B) total producer surplus from turkey sales is zero. 
C) sum of consumer and producer surpluses from turkey is $640 million. 
D) All of the above answers are correct.

Quizplus · Accepted Answer

The sum of consumer and producer surpluses from turkey is $640 million, as this represents the total welfare in the market at equilibrium.

-At the Competitive Market Outcome in the Above Figure, the