Peter Owns a Sawmill and Produces Timber for Construction

question 177

Multiple Choice

Peter owns a sawmill and produces timber for construction. He sells the timber for $300 per cubic metre. His production costs are $140 per cubic metre. His producer surplus is:

• A) $140 per cubic metre
• B) $300 per cubic metre
• C) $160 per cubic metre
• D) none of the above

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