-Bill and Krista sell potted plants from a roadside stand. The figure above shows Bill and Krista's marginal cost curve and the market price. If Bill and Krista sell 60 plants per week, their producer surplus from the 60th plant will equal

Question

Quizplus · Accepted Answer

The producer surplus from the 60th plant is the difference between the market price and the marginal cost of producing that plant. Since the marginal cost curve intersects the market price at the 60th plant, the producer surplus for that plant is $0.

-Bill and Krista Sell Potted Plants from a Roadside Stand