Gene earns $15,000 for shooting alligators under permit in Louisiana. His producer surplus is $5,000. His willingness to sell is:

Question

Quizplus · Accepted Answer

Gene's willingness to sell is the minimum amount he is willing to accept for the work he has done. Producer surplus is the difference between the market price (in this case, the $15,000 he earned) and the minimum price he would have been willing to accept (in this case, $10,000). Therefore, his willingness to sell is $10,000, which is the amount he would have been willing to take for the work he did. So, the best choice is C) $10,000.

Gene Earns $15,000 for Shooting Alligators Under Permit in Louisiana