Use the Following to Answer Questions $\text {Table: Producer Surplus}$

question 155

Multiple Choice

Use the following to answer questions : $\text {Table: Producer Surplus}$
$\text {and Phantom Tickets}$
$\begin{array}{lr}\hline \text { Student } & \text { Willingness to Sell } \\\hline \text { Tim } & \$ 1 \\\text { Laura } & 30 \\\text { Whitney } & 50 \\\text { Ralph } & 100 \\\text { Rick } & 150 \\\hline\end{array}$

-The total producer surplus in the Ontario dairy market is the:

• A) sum of the individual producer surpluses in this market.
• B) sum of all prices paid multiplied by the number of litres of milk sold.
• C) total revenue of the milk producers in Ontario.
• D) total cost of selling milk in Ontario.

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Definitions:

Marginal Revenue

The increase in revenue that results from the sale of one additional unit of output.

Average Variable Cost

The total variable costs divided by the quantity of output produced, representing the variable cost per unit.

Average Total Cost

The total cost of production divided by the quantity of output produced, encompassing both fixed and variable costs.

Total Revenue

The total income a firm receives from selling its products; calculated as the quantity sold multiplied by the price per unit.