If Harry is paid $25,000 to sell his crop of tomatoes even though he would have been willing to have sold the crop for as little as $20,000, this indicates that

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Quizplus · Accepted Answer

Producer surplus is the difference between the amount a producer receives from selling a good and the minimum amount they would have been willing to accept for it. In this case, Harry would have been willing to sell the crop for as little as $20,000, but he received $25,000. Therefore, the producer surplus is the difference between these two amounts, which is $5,000. So, choice B is correct.

If Harry Is Paid $25,000 to Sell His Crop of Tomatoes