Nick's willingness to sell his homemade chocolate chip biscuits is $9 per dozen.He sells them and realises a producer surplus of $5 per dozen.Nick sells his biscuits for:

Question

Quizplus · Accepted Answer

Nick's willingness to sell his homemade chocolate chip biscuits is $9 per dozen, which is his minimum price to cover his cost and effort. However, he can sell them for more than $9 if there are buyers willing to pay more. 
The producer surplus is the difference between the selling price and the willingness to sell price. In this case, the producer surplus is $5 per dozen. 
So, Nick's selling price is the sum of his willingness to sell price and the producer surplus, which is $9 + $5 = $14 per dozen. Therefore, the best choice is A) $14 a dozen.

Nick's Willingness to Sell His Homemade Chocolate Chip Biscuits Is