Pete produces virtual reality headsets. Over time, Pete finds himself in a perfectly competitive market where each firm faces a marginal cost of $200, and the inverse demand faced by the market is P = 1,000 – 4Q. At equilibrium, producer surplus for the market is:
Incorrect: $20,000.
$20,000.
Incorrect: $80,000.
$80,000.
Correct: $0.
$0.
$40,000.