The schedule below represents the willingness of a typical vintner to produce wine in a year. Suppose there are 100 identical producers in the market.
TABLE 6-4

-Refer to Table 6-4. If the market price of wine is $30, what is the total producer surplus equal to?
A) $1 000 000
B) $2 000 000
C) $3 000 000
D) $4 000 000

Question

The schedule below represents the willingness of a typical vintner to produce wine in a year. Suppose there are 100 identical producers in the market.
TABLE 6-4
 
-Refer to Table 6-4. If the market price of wine is $30, what is the total producer surplus equal to?
A) $1 000 000 
B) $2 000 000 
C) $3 000 000 
D) $4 000 000

Quizplus · Accepted Answer

The total producer surplus is calculated as the area above the supply curve and below the market price. If the market price is $30, the producer surplus is $3,000,000 as given in the table.

The Schedule Below Represents the Willingness of a Typical Vintner