The minimum acceptable price for a product that producer Sam is willing to receive is $15. The price he could get for the product in the market is $18. How much is Sam's producer surplus?
A) $3
B) $33
C) $45
D) $270

Question

Quizplus · Accepted Answer

Producer surplus is the difference between what the producer is willing to accept and what they actually receive in the market. In this case, Sam is willing to accept a minimum of $15 but he can receive $18 in the market. Therefore, his producer surplus is the difference, which is $3.

The Minimum Acceptable Price for a Product That Producer Sam