Cost (Dollars) Seller 1,600 1,400 1,100 900 700 Mike Laura Sasha David Codi Refer to Table 7-7. If the market price is S1,000, the producer surplus in the market is O a. $700. O b. S400. O. $300. d. $100.
Producer surplus is the sum acquired by the producer by creating and selling the products. It is the contrast between the sum at which the producer will supply the products and the genuine sum which the producer gets on making the exchange at the market cost. Producer surplus can be determined by deducting the expense of creation from the expense at which the products are sold. The objective of the producer forever is to acquire producer surplus by selling their merchandise at a greater cost. Be that as it may, assuming the costs of products are expanded much of the time it might prompt the misfortune sought after of such merchandise. Henceforth, the producers need to remember this while attempting to acquire producer surplus.
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