(Figure: Producer Surplus III) Look at the figure Producer Surplus III.If the price of the good is $2,producer surplus will equal:

A) $20.
B) $40.
C) $60.
D) $80.

Question

(Figure: Producer Surplus III) Look at the figure Producer Surplus III.If the price of the good is $2,producer surplus will equal:A) $20.B) $40.C) $60.D) $80.

Chirag Vlogs · Accepted Answer

Final Answer : A, Explanation :  Producer surplus is the difference between the price a producer is willing to sell a good for and the price they actually receive. In this case, the producer is willing to sell the good for $2, but the market price is $4. Therefore, the producer surplus is $2.

(Figure: Producer Surplus III) Look at the figure Producer Surplus III.If the price of the good is $2,producer surplus will equal:

A) $20.
B) $40.
C) $60.
D) $80.

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Learning Objectives

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