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1 year ago

what is the producer surplus if there is a $5 per unit transaction cost? (do not include the dollar sign $ in your answer)

Business

1 answer:

Anarel [89]1 year ago

6 0

11 is the producer surplus if there is a $5 per unit transaction cost.

Producer surplus is outlined because the distinction between quantity|the quantity|the number} the producer is willing to provide product for and therefore the actual amount received by him once he makes the trade. Producer surplus could be a live of producer welfare.

Transaction costs see the prices concerned in market exchange. These embrace {the prices|the costs} of discovering market prices and therefore the costs of writing and implementing contracts. The character and magnitude of dealing prices vary in several business eventualities. withal, these prices play a large role in business management and economic process.

The question is incomplete, find the complete question here

Where P0 = $5, PS,0 = $8, PS,1 = $11, P = $14, PB,1 = $16, PB,0 = $18 P1 = $20, Q0 = 40, Q1 = 80, and Q = 120.

What is the price the seller faces if there is a $5 per unit transaction cost? (Do not include the dollar sign $ in your answer)

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