81) Producer surplus the
A) cost of the good summed over
81) Producer surplus is the
A) cost of the good summed over the quantity sold.
B) demand for a good minus the supply summed over the quantity sold.
C) price of a good minus the marginal cost of producing it summed over the quantity sold.
D) marginal cost of producing it summed over the quantity sold.
82) Producer surplus is the difference between the
A) price and the willingness to pay for the good.
B) price and the marginal cost of producing the good summed over the quantity sold.
C) willingness to pay for the good and the marginal cost of producing the good summed over the quantity sold.
D) marginal benefit of consuming the good and the marginal cost of producing the good summed over the quantity sold.
83) In the market for CDs, the producer surplus will decrease if ________.
A) the supply of CDs increases
B) the price of a CD decreases
C) the marginal cost of a CD decreases
D) the price of a CD increases
84) When the Smith's were shopping for their present home, the asking price from the previous owner was $250,000.00. The Smith's had decided they would pay no more than $245,000.00 for the house. After negotiations, the Smith's actually purchased the house for $239,000.00. Therefore, the previous owner earned a producer surplus of
D) an amount unknown given the information in the question.
85) Stefano has just completed an original oil painting. After considering the costs for brushes, paint, canvas, and the value of Stefano's labor time, the marginal cost of the painting is $1,000. Lucky Stefano. One art lover paid him $1,500. How much producer surplus did Stefano obtain?
A) The amount of producer surplus cannot be determined from the information given.
86) Farmer Jones knows that the marginal cost to produce a bushel of tomatoes is $5 per bushel. He also knows that a consumer is willing to pay a maximum of $9 for the bushel. The price of the bushel is $6 and Farmer Jones sells his bushel for $6. On this bushel, Farmer Jones earns a producer surplus equal to
87) Considering all costs of production, the marginal cost of producing a hot dog is $1.00. The price of a hot dog is $1.50. Thus, the producer surplus from this hot dog is
D) Zero, because $1.50 is the most anyone would pay for a hot dog.
88) Suppose there are four firms that are each willing to sell one unit of a good. Each firm has a different minimum price that they are willing to sell for: Firm A $6, Firm B $7, Firm C $10, and Firm D $12. If the market price is $11 then the total producer surplus is
89) In the above figure, when the price of pretzels is $3.00 per pound, the total producer surplus from all the pretzels will be
B) greater than at any other price.
C) less than at any other price.
D) the sum of the difference between $3.00 and the marginal cost of all the pounds produced.
90) The figure illustrates the market for hot dogs on Big Foot Island. The producer surplus is ________.
A) $240 an hour
B) $180 an hour
C) $1.20 a hot dog
D) $60 an hour