Asked by Mashudu Daniel Rambau on May 26, 2024
Verified
If producing a soccer ball costs Jake $5, and he sells it for $40, his producer surplus is $45.
Producer Surplus
Producer surplus is the difference between what producers are willing to accept for a good or service versus what they actually receive, often seen as profit.
- Present a detailed explanation and perform calculations related to producer surplus, incorporating an understanding of its essential components in various cases.
Verified Answer
KM
Kesilolynnori MameaMay 31, 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. In this case, it's $40 (selling price) - $5 (cost) = $35.
Learning Objectives
- Present a detailed explanation and perform calculations related to producer surplus, incorporating an understanding of its essential components in various cases.