Considering all costs of production, the marginal cost of producing a hot dog is $1.00. The price of a hot dog is $1.50. Thus, the producer surplus from this hot dog is

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Quizplus · Accepted Answer

Producer surplus is the difference between what a producer is willing to accept for a good versus what they actually receive. Here, the cost is $1.00, and the selling price is $1.50, so the surplus is $0.50.

Considering All Costs of Production, the Marginal Cost of Producing