Suppose that the price of a box of shotgun shells is $5. Morris's marginal cost of producing boxes of shotgun shells is $3.50 for the first box, Tommy's marginal cost of producing boxes of shotgun shells is $4 for the second box, Pat's marginal cost of producing boxes of shotgun shells is $5.50 for the third box, and Al's marginal cost of producing boxes of shotgun shells is $6 for the fourth box. In equilibrium, what is the producer surplus from producing boxes of shotgun shells?
A. $1.50
B. $2.50
C. $3.50
D. $4.00
Answer: B
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