If a firm produces five chairs with marginal costs of $25,$30,$40,$55,and $75,respectively,and sells them for $80 each,what is the firm's total producer surplus?
A) $400
B) $225
C) $175
D) $150
E) $80

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the selling price and the marginal cost for each unit. For the five chairs, the surplus is ($80-$25) + ($80-$30) + ($80-$40) + ($80-$55) + ($80-$75) = $55 + $50 + $40 + $25 + $5 = $175.

If a Firm Produces Five Chairs with Marginal Costs of $25,$30,$40,$55,and