Donald produces nails at a cost of $200 per ton.If he sells the nails for $350 per ton,his producer surplus per ton is
A)$150.
B)$200.
C)$350.
D)$550.

Name: Donald produces nails at a cost of $200 per ton.If he sells the nails for $350 per ton,his producer surplus per ton is A)$150. B)$200. C)$350. D)$550.
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Question

Quizplus · Accepted Answer

Producer surplus is the difference between the price a producer receives for a good and the marginal cost of producing that good. In this case, the producer surplus is $350 - $200 = $150 per ton.

Donald Produces Nails at a Cost of $200 Per Ton