Asked by
Ramandeep Kaur Bhullar
on Nov 25, 2024
Verified
The minimum acceptable price for a product that producer Sam is willing to receive is $15. The price he could get for the product in the market is $18. How much is Sam's producer surplus?
A) $3
B) $33
C) $45
D) $270
Producer Surplus
The difference between the actual amount a producer receives from selling a product and the minimum amount they would accept.
Minimum Acceptable Price
The lowest price at which a seller is willing to sell a product or service, often covering at least the cost of production.
- Gain an understanding of the concept of producer surplus and the process involved in its calculation.
Verified Answer
HF
Learning Objectives
- Gain an understanding of the concept of producer surplus and the process involved in its calculation.