Table 7-10
The following table represents the costs of five possible sellers.
-Refer to Table 7-10. If the price is $1,000,
A)Bobby is an eager supplier.
B)Dianne is an eager supplier.
C)Evaline's producer surplus is $100.
D)All of the above are correct.

Question

Table 7-10
The following table represents the costs of five possible sellers. 
-Refer to Table 7-10. If the price is $1,000,
A)Bobby is an eager supplier. 
B)Dianne is an eager supplier. 
C)Evaline's producer surplus is $100. 
D)All of the above are correct.

Quizplus · Accepted Answer

Evaluating producer surplus is calculated by taking the difference between the price that a producer receives and the seller's cost. In this case, Evaline's cost is $900 and the price is $1,000, so her producer surplus is $100 ($1,000 - $900 = $100). Bobby and Dianne's costs exceed the price, so they are unlikely to be eager suppliers at this price point.

Table 7-10 The Following Table Represents the Costs of Five Possible Sellers