Consider the market for a iced coffees.  Each shop can make at most one drink.  For shop A the marginal cost of making the coffee is $1.25, for shop B, it is $2.10, for shop C it is $3.00 and finally, for shop D it is $2.50.  If the market price is P = $2.75  a. what is the quantity supplied? b. what is the total producer surplus?

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Consider the market for a iced coffees.  Each shop can make at most one drink.  For shop A the marginal cost of making the coffee is $1.25, for shop B, it is $2.10, for shop C it is $3.00 and finally, for shop D it is $2.50.  If the market price is P = $2.75 

a. what is the quantity supplied?

b. what is the total producer surplus?

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