Table 7-8
The only four producers in a market have the following costs:

-Refer to Table 7-8.If Evan,Selena,and Angie sell the good,and the resulting producer surplus is $300,then the price must have been
A) $200.
B) $300.
C) $450.
D) $600.

Question

Table 7-8
The only four producers in a market have the following costs:
 
-Refer to Table 7-8.If Evan,Selena,and Angie sell the good,and the resulting producer surplus is $300,then the price must have been
A) $200. 
B) $300. 
C) $450. 
D) $600.

Quizplus · Accepted Answer

The producer surplus is the difference between the price and the marginal cost of production. In this case, the marginal cost of production is $200, so the price must have been $200 + $300 = $500.

Table 7-8 The Only Four Producers in a Market Have the Following