Question

Ivana produces cookies. Her production cost is R6 per dozen. She sells the cookies for R8 per dozen. Her producer surplus per dozen cookies is


R2.


R6.


R8.


R14.

Answers

Answered by GPT 3.5
R2.

Producer surplus is the difference between the price at which a good is sold and the minimum price at which a producer is willing to sell it. In this case, Ivana's production cost is R6 per dozen, and she sells the cookies for R8 per dozen. Therefore, her producer surplus per dozen cookies is R8 - R6 = R2.
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