The following table represents the costs of five possible sellers.
Table 7-4

-Refer to Table 7-4.If the price is $1,000,
A)Denise is an eager supplier.
B)Catherine is an eager supplier.
C)Dale's producer surplus is $500.
D)All of the above are correct.

Question

The following table represents the costs of five possible sellers.
Table 7-4
 
-Refer to Table 7-4.If the price is $1,000,
A)Denise is an eager supplier. 
B)Catherine is an eager supplier. 
C)Dale's producer surplus is $500. 
D)All of the above are correct.

Quizplus · Accepted Answer

At a price of $1,000, Catherine would be the most eager supplier as her cost is the lowest at $800. Denise's cost is also $800 but her producer surplus is lower than Catherine's, and hence Catherine would be the best choice. Dale's producer surplus at $1,000 would be $200 ($700 cost - $500 price), not $500 as given in option C. Hence, option D is incorrect.

The Following Table Represents the Costs of Five Possible Sellers