Bill created a new software program he is willing to sell for $200. He sells his first copy and enjoys a producer surplus of $150. $350 is the price paid for the software.
Producer surplus is the difference between the price a person would accept for a certain quantity of a good and the price they could get for the good if they sold it at market value. The producer benefits from market sales of the good by receiving the difference or surplus amount.
Profit and producer surplus are similar concepts. The producer earns a producer surplus when the competitive market value for a good or service is higher than the lowest price the producer is willing to sell it for.
To learn more abut producer surplus refer here:
https://brainly.com/question/28549308
#SPJ4
