John has just completed an original oil painting. After considering the production costs for brushes, paint, canvas, and the value of John’s labor time, the opportunity cost of the painting is £1,000. Luckily for John, one art lover paid him £1,500. How much producer surplus did John obtain?
Select ONE answer:
- The amount of producer surplus cannot be determined from the information given.
- £500
- £1,500
- £1,000
Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This is a multiple choice question is suitable for Economics KS5 classes.
The answer is 2
This work is licensed under a Creative Commons Attribution 4.0 International License.
The Multiple Choice Questions Blog 