Table 7-2
The costs of five possible sellers

-Refer to Table 7-2. If the price is $1000, Landon's producer surplus will be:
A) $1000
B) $750
C) $500
D) $25

Question

Table 7-2
The costs of five possible sellers
 
-Refer to Table 7-2. If the price is $1000, Landon's producer surplus will be:
A) $1000 
B) $750 
C) $500 
D) $25

Quizplus · Accepted Answer

Producer surplus is calculated as the difference between the price and the minimum price at which the producer is willing to sell. If Landon's minimum price is $500, and the market price is $1000, his producer surplus is $1000 - $500 = $500.

Table 7-2 The Costs of Five Possible Sellers