Khan is a financial analyst and provides a consultancy service. He charges clients $2000 per day. His producer surplus is $1200. Khan's willingness to sell is:
A) $0
B) $800
C) $1200
D) $2000

Question

Quizplus · Accepted Answer

Producer surplus is the difference between what a producer is willing to accept for a good or service and what they actually receive. Since Khan's producer surplus is $1200 and he charges $2000, his willingness to sell is $2000 - $1200 = $800.

Khan Is a Financial Analyst and Provides a Consultancy Service