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Answer to Question #14695 in Microeconomics for sha

Question #14695
What is producer surplus? “The more the competition among the sellers, the less the producer surplus enjoyed by the producers” – do you agree with the statement. Justify your answer. Suppose, a producer is willing to sell 50Kg potato at price Tk.18/Kg. If the market price of potato is Tk.24/Kg, what will be the total producer surplus of the producer if he/she sells 50Kg potato?
Expert's answer
Producer surplus is an economic measure of the difference between the amount that a
producer of a good receives and the minimum amount that he or she would be
willing to accept for the good. The difference, or surplus amount, is the
benefit that the producer receives for selling the good in the
market.
The total producer surplus will be 50*(24 - 18) = 300

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