# Question Portia produces and sells headbands. Her marginal cost for one headband is $6, and her average cost is$4. She gains producer surplus only when she sells headbands at a price above: O $10.$5. $6.$4. (Figure: Supply Curve) The graph shows the supply curve for jars of laundry detergent. Price Supply $20$5 0 1 18 Quantity If 18 units are sold at a price of $20, what is the producer surplus on the last jar sold? O$15 O $270$0 $135 THHPRX The Asker · Economics Transcribed Image Text: Portia produces and sells headbands. Her marginal cost for one headband is$6, and her average cost is $4. She gains producer surplus only when she sells headbands at a price above: O$10. $5.$6. $4. (Figure: Supply Curve) The graph shows the supply curve for jars of laundry detergent. Price Supply$20 $5 0 1 18 Quantity If 18 units are sold at a price of$20, what is the producer surplus on the last jar sold? O $15 O$270 $0$135
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Transcribed Image Text: Portia produces and sells headbands. Her marginal cost for one headband is $6, and her average cost is$4. She gains producer surplus only when she sells headbands at a price above: O $10.$5. $6.$4. (Figure: Supply Curve) The graph shows the supply curve for jars of laundry detergent. Price Supply $20$5 0 1 18 Quantity If 18 units are sold at a price of $20, what is the producer surplus on the last jar sold? O$15 O $270$0 $135 Community Answer 17MNY6 Q) at Q=1 Marginal cos t=$6Average cose =\$4Producer surplus is the difference between the price and the amount at which producer is willing to supply goods.:. Producer surplus is only gained when additional cost of producing a good is less than price recieved i.e. MC < P i.e. Marginal cost < PriceSo, price must be above marginal cost s ... See the full answer