Yusuf produces nails at a cost of R2 000 per ton. If he sells the nails for R3 500 per ton, his producer surplus per ton is

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the price producers receive for a good and the cost of producing it. In this case, Yusuf's producer surplus per ton would be:

= Selling price per ton - Cost per ton
= R3 500 - R2 000
= R1 500

Therefore, the correct choice is A) R1 500.

Yusuf Produces Nails at a Cost of R2 000 Per