Suppose seller X is willing to sell one good X for $5, a second good X for $10, a third for $16, a fourth for $25, and the market price is $20. What is seller X's producer surplus?
A) $15
B) $20
C) $22
D) $29

Question

Quizplus · Accepted Answer

Producer surplus is the difference between what a seller is paid for a good and the seller's cost. Here, the seller sells four goods at $20 each (market price), totaling $80. The costs are $5 + $10 + $16 + $25 = $56. The producer surplus is $80 - $56 = $24, but since this option is not available, it seems there was a mistake in the calculation or in the options provided. Based on the options given, the closest answer is D) $29, but please note the correct calculation discrepancy.

Suppose Seller X Is Willing to Sell One Good X