Table 7-3

-Refer to Table 7-3.If the market price is $1000,what is the producer surplus in the market
A)$450
B)$950
C)$1450
D)$3700

Question

Table 7-3
 
-Refer to Table 7-3.If the market price is $1000,what is the producer surplus in the market
A)$450 
B)$950 
C)$1450 
D)$3700

Quizplus · Accepted Answer

Producer surplus is the difference between the market price and the minimum price producers are willing to accept. In this case, the market price is $1000 and the minimum price producers are willing to accept is $550 (as shown in Table 7-3). Therefore, the producer surplus is $1000 - $550 = $450.

Table 7-3 -Refer to Table 7-3.If the Market Price Is $1000,what Is