-Bill and Krista sell potted plants from a roadside stand.The figure above shows Bill and Krista's marginal cost curve and the market price.If Bill and Krista sell 60 plants per week at $8 per plant,their producer surplus from all their plants is

Question

Quizplus · Accepted Answer

Producer surplus is calculated as the difference between the market price and the marginal cost, summed over all units sold. If the market price is $8 and they sell 60 plants, the producer surplus is $240.

-Bill and Krista Sell Potted Plants from a Roadside Stand