LDT Products,Inc. ,designs and sells flannel jackets.The company is willing to sell a men's flannel jacket for as little as $45.Its main competitor is MK Outriggers,which is willing to sell the same men's flannel jacket for as little as $40.The current market price of that type of jacket is $57.What is the total producer surplus for the two firms?

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Producer surplus is the difference between what producers are willing to accept for a good versus what they actually receive. LDT Products, Inc. is willing to sell for $45 but sells for $57, creating a surplus of $12. MK Outriggers is willing to sell for $40 but sells for $57, creating a surplus of $17. Adding these together gives a total producer surplus of $29.