If MC's Hammers,a perfectly competitive firm,finds that its total revenue is $45,000,its fixed cost is $20,000,and its total cost is $50,000,its producer surplus is _____

Question

Quizplus · Accepted Answer

Producer surplus is the difference between total revenue and total variable cost. 
Total variable cost = Total cost - Fixed cost 
Total variable cost = $50,000 - $20,000 = $30,000 
Producer surplus = Total revenue - Total variable cost = $45,000 - $30,000 = $15,000.

If MC's Hammers,a Perfectly Competitive Firm,finds That Its Total Revenue