Luis is willing to sell his pool table for no less than $600,but if he gets $840,the producer surplus Luis receives is:
A)$600.
B)$840.
C)$240.
D)$1,440.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the price at which the good is sold and the minimum price at which the seller is willing to sell it. In this case, Luis is willing to sell the pool table for no less than $600, but he actually receives $840. Therefore, his producer surplus is $840 - $600 = $240. Option C is the correct answer.

Luis Is Willing to Sell His Pool Table for No