Question

a producer will not supply any items when the price is $515 or lower, but when the price per item is $555, the producer is willing to supply 690 items.

Answer 1

Producer surplus is the amount that a seller is paid for a good minus the seller's actual cost. It represents the extra benefit that producers receive when they are able to charge a price higher than what they required to supply the product.

Step-by-step explanation:

In this question, we are discussing the concept of producer surplus in economics. Producer surplus is the amount that a seller is paid for a good minus the seller's actual cost. It represents the extra benefit that producers receive when they are able to charge a price higher than what they required to supply the product.

Based on the information given, we can calculate the producer surplus at the equilibrium price of $555. At this price, the producer is willing to supply 690 items. To find the surplus, we subtract the cost of producing 690 items from the total amount received.

Producer surplus = Price per item * Quantity supplied - Cost of producing Quantity supplied

Producer surplus = $555 * 690 - Cost of producing 690 items

Unfortunately, we do not have information about the cost of producing the items, so we cannot calculate the exact producer surplus without it.