If Joe is happy with $30,000 salary but he is earning $50,000. what will be producer surplus that joe enjoys?

Answer 1

Producer Surplus is simply the difference Between what you are getting for your output and the minimum amount required to get you to do the same thing. In this case, 50,000 - 30,000 is Joe's Producer surplus. This is also sometimes called an economic rent.

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Lenny D.