-The above figure shows the competitive market for turkey. The producer surplus for the 300 millionth pound of turkey is
A) $1.20 per pound.
B) $135 million.
C) $0.30 per pound.
D) $0.80 per pound.

Question

-The above figure shows the competitive market for turkey. The producer surplus for the 300 millionth pound of turkey is
A) $1.20 per pound. 
B) $135 million. 
C) $0.30 per pound. 
D) $0.80 per pound.

Quizplus · Accepted Answer

Producer surplus is the difference between the price producers are willing to accept and the price they actually receive. If the market price is $1.20 and the cost for the 300 millionth pound is $0.90, the surplus is $0.30 per pound.

-The Above Figure Shows the Competitive Market for Turkey