Which of the Following Events Would Increase Producer Surplus

question 208

Multiple Choice

Which of the following events would increase producer surplus?

• A)Sellers' costs stay the same and the price of the good increases.
• B)Sellers' costs increase and the price of the good stays the same.
• C)Sellers' costs increase and the price of the good decreases.
• D)Sellers' costs stay the same and the price of the good decreases.

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Definitions:

Freight Costs

The expenses associated with transporting goods from one location to another.

FOB Destination

A shipping term indicating that the seller bears freight charges and owns the goods until they are delivered to the buyer’s location.

Freight Charges

Costs associated with transporting goods from one place to another.

FOB Destination

A shipping term indicating that the seller pays for transportation and is responsible for the goods until they are received by the buyer.