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Inga [223]
3 years ago
5

Global Reach Corp. is a public company whose shares are currently trading in the market at $150 each. The company manufactures s

martphones at the cost of $300 per unit and sells them in the market for $500 each. What is the company's producer surplus?
Business
1 answer:
Shkiper50 [21]3 years ago
6 0

Answer:

The company's producer surplus is $200 per unit

Explanation:

Producer surplus: The amount which shows a difference between the selling value or market price and the cost price. The difference in the price is a producer surplus

In mathematically,  

Producer surplus = Selling price or Market price - cost price

                             = $500 per unit - $300  per unit

                             = $200 per unit.

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