Asked by Tiffani Duncan on Apr 27, 2024
Verified
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.
Verified Answer
VL
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.
Learning Objectives
- Comprehend the principle of producer surplus and the method by which it is determined.
Related questions
Producer Surplus Describes a Situation in Which There Is Excess ...
If the Market Price of a Bowling Ball Is $125 ...
Producer Surplus Is the Difference Between the Most a Person ...
Producer Surplus Measures the Benefit to Sellers from Receiving a ...
The Lower the Price, the Lower the Producer Surplus, All ...