Table 7-12
The only four producers in a market have the following costs:

-Refer to Table 7-12. 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 7-12
The only four producers in a market have the following costs:
 
-Refer to Table 7-12. 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 what producers are willing to accept and what they actually receive. If Evan, Selena, and Angie sell the good and the total producer surplus is $300, the price must have been $200, as it is the only option that would result in a total surplus of $300 when considering their individual costs.

Table 7-12 The Only Four Producers in a Market Have the Following