Asked by Franco Volschenk on May 03, 2024
Verified
If the market price of a bowling ball is $125 and the full cost of producing it is $35, then a bowling ball producing firm gets producer surplus of
A) $35.
B) $90.
C) $125.
D) $160.
Producer Surplus
The difference between the amount producers are willing to accept for a good or service versus what they actually receive, usually a measure of profit.
Market Price
The price at which a service or asset is presently traded in a given market.
Full Cost
Full cost involves calculating the total cost of production, including both fixed and variable costs, to assess the overall expenses incurred by a business.
- Understand the concept of producer surplus and how it is calculated.
Verified Answer
Learning Objectives
- Understand the concept of producer surplus and how it is calculated.
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