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
More
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