The marginal cost of producing one more hot dog is $1.00.The price of a hot dog is $1.50.The producer surplus from selling one more hotdog is

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the price a producer receives and the marginal cost of production. In this case, the marginal cost of producing one more hot dog is $1.00 and the price of the hot dog is $1.50. Therefore, the producer surplus from selling one more hot dog is $0.50 ($1.50 - $1.00 = $0.50).

The Marginal Cost of Producing One More Hot Dog Is