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The Marginal Cost for Morgan's Marvellous Movies Is Given in the Following

Question 42

Multiple Choice

The marginal cost for Morgan's Marvellous Movies is given in the following table: Table 5.2.2
 Quantity  (number of movies)   Marginal cost  (dollars)  14.0024.5035.0045.5056.00\begin{array} { c c } \hline\begin{array} { c } \text { Quantity } \\\text { (number of movies) }\end{array} & \begin{array} { c } \text { Marginal cost } \\\text { (dollars) }\end{array} \\\hline 1 & 4.00 \\2 & 4.50 \\3 & 5.00 \\4 & 5.50 \\5 & 6.00 \\\hline\end{array} If the firm sells the fifth movie at a price of $7,what is the producer surplus on that movie?


A) $28
B) $3
C) $7
D) $6
E) $1

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