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5 April, 08:18

Global Reach Corp. is a public company whose shares are currently trading in the market at $150 each. The company manufactures smartphones at the cost of $300 per unit and sells them in the market for $500 each. What is the company's producer surplus?

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  1. 5 April, 08:45
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    The company's producer surplus is $200 per unit

    Explanation:

    Producer surplus: The amount which shows a difference between the selling value or market price and the cost price. The difference in the price is a producer surplus

    In mathematically,

    Producer surplus = Selling price or Market price - cost price

    = $500 per unit - $300 per unit

    = $200 per unit.
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