Donald produces nails at a cost of $700 per ton.If he sells the nails for $900 per ton, his producer surplus is:

Name: Donald produces nails at a cost of $700 per ton.If he sells the nails for $900 per ton, his producer surplus is:
Brand: Quizplus
Rating: 4.8 (55 reviews)

Question

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, Donald is willing to accept $700 but receives $900, so the surplus is $900 - $700 = $200 per ton.

Donald Produces Nails at a Cost of $700 Per Ton