Table 7-11
The following table represents the costs of five possible sellers.

-Refer to Table 7-11. If the market price is $1,200, the producer surplus in the market is
A) $100.
B) $800.
C) $400.
D) $500.

Question

Table 7-11
The following table represents the costs of five possible sellers.
 
-Refer to Table 7-11. If the market price is $1,200, the producer surplus in the market is
A) $100. 
B) $800. 
C) $400. 
D) $500.

Quizplus · Accepted Answer

Producer surplus is calculated as the difference between the market price and the minimum price producers are willing to accept, summed over all units sold. If the market price is $1,200, the producer surplus is $800 based on the given options.

Table 7-11 The Following Table Represents the Costs of Five Possible Sellers