Question

If the sellers bid against each other for the right to sell the good to a consumer, then the producer surplus will be $0 or slightly more. $50 or slightly less. $150 or slightly less. $200 or slightly more.

Answer 1

Answer:

$50 or slightly less

Explanation:

If we assume that there is four persons namely E, S, A and K

The producer surplus is the surplus that shows the difference between the seller value and the seller cost

In the case when the seller bid against each other so here the producer surplus would be $100 or slightly less

Here only one person could able to send the good i.e. person E As the cost to the person would be lowered by the goods value

Therefore the option B is correct