If Dale sells a shirt for $40, and his producer surplus from the sale is $23, his cost must have been:
A) $63
B) $40
C) $23
D) $17

Name: If Dale sells a shirt for $40, and his producer surplus from the sale is $23, his cost must have been: A) $63 B) $40 C) $23 D) $17
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Question

Quizplus · Accepted Answer

Producer surplus is the difference between the price at which a product is sold and the cost of producing it. Therefore, cost = price - producer surplus.
Cost = $40 - $23 = $17

If Dale Sells a Shirt for $40, and His Producer