What is the producer surplus earned by a seller whose willingness to sell is $10 below the market price of a good?
A) $0
B) $10
C) (P* − $10)
D) None of these are correct.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the market price and the minimum price at which a producer is willing to sell a good. If the market price is $10 above the seller's willingness to sell, the producer surplus is $10.

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