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

-Refer to Table 7-7.If Charlie,Quinn,Wrex,and Maxine sell the good,and the resulting producer surplus is $700,then the price must have been

Question

Table 7-7
The only four producers in a market have the following cost:
 
-Refer to Table 7-7.If Charlie,Quinn,Wrex,and Maxine sell the good,and the resulting producer surplus is $700,then the price must have been

Quizplus · Accepted Answer

The producer surplus is the difference between what producers are willing to accept and what they actually receive. If the total producer surplus is $700, and assuming each seller has a different cost, the price must be $300 to result in that total surplus when considering the individual costs of Charlie, Quinn, Wrex, and Maxine.

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