Table 7-10

-Refer to Table 7-10.You want to hire a professional photographer to take pictures of your family.The table shows the costs of the four potential sellers in the local photography market.You hire Kevin for a price of $500.What is his producer surplus?
A) $500
B) $150
C) $100
D) $50

Question

Table 7-10
 
-Refer to Table 7-10.You want to hire a professional photographer to take pictures of your family.The table shows the costs of the four potential sellers in the local photography market.You hire Kevin for a price of $500.What is his producer surplus?
A) $500 
B) $150 
C) $100 
D) $50

Quizplus · Accepted Answer

Producer surplus is the difference between the price received and the cost to produce. If Kevin is hired for $500 and his cost is $450, his producer surplus is $500 - $450 = $50.

Table 7-10 -Refer to Table 7-10.You Want to Hire a Professional Photographer