The market for tomatoes is in equilibrium at the price of $10, and quantity of 50 tomatoes. If consumer surplus is $400 and total surplus is $650, what is the producer surplus in the tomato market and why?* The producer surplus is $0, because producer surplus is offset by the costs of producing tomatoes. The producer surplus is $250 , because the total surplus less what consumers receive must go to producers. The producer surplus is -$400 , because consumer and producer surplus must offset one another. The producer surplus is $500, because the producer surplus is the equilibrium price times the equilibrium quantity =$10x50=$500. The producer surplus is $650 , because producer surplus and total surplus are always

The market for tomatoes is in equilibrium at the price of $10, and quantity of 50 tomatoes. If consumer surplus is $400 and total surplus is $650, what is the producer surplus in the tomato market and why?* The producer surplus is $0, because producer surplus is offset by the costs of producing tomatoes. The producer surplus is $250 , because the total surplus less what consumers receive must go to producers. The producer surplus is -$400 , because consumer and producer surplus must offset one another. The producer surplus is $500, because the producer surplus is the equilibrium price times the equilibrium quantity =$10x50=$500. The producer surplus is $650 , because producer surplus and total surplus are always

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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