What is the producer surplus earned by a seller whose willingness to sell is $10 below the market price of a good?
A) $0
B) $10
C) (P* $10)
D) None of these is correct.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the market price and the seller's willingness to sell. In this case, the seller's willingness to sell is $10 below the market price. Therefore, the Producer Surplus earned by the seller is $10. So, the correct answer is B.

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