Asked by Tiffani Duncan on Apr 27, 2024

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A firm that sells a car for $30,000 gets producer surplus of $30,000.

Producer Surplus

The difference between the actual amount producers receive for a good and the minimum amount they would be willing to accept.

Firm

A business enterprise or establishment engaged in commercial, industrial, or professional activities.

  • Comprehend the principle of producer surplus and the method by which it is determined.
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Vivian LuongMay 02, 2024
Final Answer :
False
Explanation :
Producer surplus is the difference between what a producer is willing to accept for a good versus what they actually receive. If a car sells for $30,000, the producer surplus would only be $30,000 if the producer was willing to accept $0 for the car, which is highly unlikely.