Asked by
Parker Joseph
on Dec 11, 2024Verified
If Mateo is paid $25,000 to sell his crop of tomatoes even though he would have been willing to have sold the crop for as little as $20,000, this indicates that
A) Mateo received no producer surplus from the transaction.
B) Mateo received $5,000 of producer surplus from the transaction.
C) Mateo received $20,000 of producer surplus from the transaction.
D) Mateo received $25,000 of producer surplus from the transaction.
Producer Surplus
The gap between the amount sellers are prepared to accept for a product and the actual selling price they obtain.
Crop Of Tomatoes
The product yield from cultivating tomatoes over a certain period or area.
Transaction
The exchange of goods, services, or funds between two or more parties, forming the basis of economic activity.
- Ascertain the circumstances causing variations in producer surplus.
Verified Answer
JE
Learning Objectives
- Ascertain the circumstances causing variations in producer surplus.
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