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8 January, 21:16

Donald produces nails at a cost of $200 per ton. If he sells the nails for $350 per ton, his producer surplus per ton isA. $350. B. $200. C. $550. D. $150.

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  1. 8 January, 21:22
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    The correct answer is letter "D": $150.

    Explanation:

    Producer Surplus is the difference between the price at which a producer sells a product and the minimum price a producer would have accepted for the product. The surplus comes from the producer being able to sell its products at a higher market price than its minimum price.

    Thus, in the example:

    Producer surplus = $350 - $200

    Producer surplus = $150
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Home » Business » Donald produces nails at a cost of $200 per ton. If he sells the nails for $350 per ton, his producer surplus per ton isA. $350. B. $200. C. $550. D. $150.
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