Laura makes hand-made jewelry and she would be willing to sell pairs of earrings for $50.If Laura sells each pair of earrings for $65,her producer surplus per pair of earrings sold would be equal to:

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the selling price of a product and the cost of producing it. In this case, Laura's cost of producing a pair of earrings is $50 and she is willing to sell each pair for $65. Therefore, her producer surplus per pair of earrings sold would be $15 ($65 - $50). Choice C is the correct answer.

Laura Makes Hand-Made Jewelry and She Would Be Willing to Sell