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Figure: Understanding Surplus and Efficiency
-(Figure: Understanding Surplus and Efficiency)In the graph,what is the producer surplus?

Question

Use the following to answer questions 
Figure: Understanding Surplus and Efficiency 
-(Figure: Understanding Surplus and Efficiency)In the graph,what is the producer surplus?

Quizplus · Accepted Answer

Producer surplus is the difference between the price producers are willing to sell a good for and the price they actually receive. In this case, producers are willing to sell the good for $40, but they are actually receiving $60. Therefore, the producer surplus is $20.

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