Zara produces carrot muffins.Her production cost is $2 per dozen.She sells the muffins for $6 per dozen.What is her producer surplus

Question

Quizplus · Accepted Answer

The producer surplus is the difference between the price at which a producer is willing to sell a good and the actual price they receive. In this case, Zara's production cost is $2 per dozen and she sells the muffins for $6 per dozen.

Therefore, her producer surplus is:

$6 - $2 = $4 per dozen

So the best choice is B.

Zara Produces Carrot Muffins