Asked by hector batalla on Jul 27, 2024
Verified
Luis is willing to sell his pool table for no less than $600,but if he gets $840,the producer surplus Luis receives is:
A) $600.
B) $840.
C) $240.
D) $1,440.
Producer Surplus
The difference between what producers are willing to accept for a good or service and what they actually receive, representing their gain.
- Familiarize yourself with the concept of producer surplus and its reaction to shifts in market environments.
Verified Answer
SB
Schlindlyne BellamourJul 31, 2024
Final Answer :
C
Explanation :
Producer surplus is the difference between the price at which the good is sold and the minimum price at which the seller is willing to sell it. In this case, Luis is willing to sell the pool table for no less than $600, but he actually receives $840. Therefore, his producer surplus is $840 - $600 = $240. Option C is the correct answer.
Learning Objectives
- Familiarize yourself with the concept of producer surplus and its reaction to shifts in market environments.
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