Laura makes hand-made jewelry and she would be willing to sell pairs of earrings for $50.If Laura sells each pair of earrings for $65,her producer surplus per pair of earrings sold would be equal to

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the market price and the cost of production. In this case, the cost of production for a pair of earrings is $50 and Laura is willing to sell them for $65, so her producer surplus per pair of earrings sold would be $15 ($65 - $50).

Laura Makes Hand-Made Jewelry and She Would Be Willing to Sell