Figure 7-7

-Refer to Figure 7-7.If producer surplus is $14,then the price of the good is
A) $11.00.
B) $12.00.
C) $13.50.
D) $14.75.

Question

Figure 7-7
 
-Refer to Figure 7-7.If producer surplus is $14,then the price of the good is
A) $11.00. 
B) $12.00. 
C) $13.50. 
D) $14.75.

Quizplus · Accepted Answer

The price of the good is $11.00 because producer surplus is the difference between the price of the good and the marginal cost of production. In this case, the marginal cost of production is $7.00, so the price of the good must be $11.00.

Figure 7-7 -Refer to Figure 7-7.If Producer Surplus Is $14,then the Price