Avi lists his car on Facebook Marketplace. Fatima contacts him and they negotiate a price of $2800 for the car. What is Avi's producer surplus?

To find Avi's producer surplus, we need to know the difference between the price Avi receives for the car and his cost of production (the minimum price he is willing to accept). However, since the problem does not specify Avi's cost, we will analyze the situation theoretically.

Problem Breakdown

1. Negotiated Price: The final price for the car is $2800.
2. Cost of Production: We need Avi's cost to calculate producer surplus, but it's not provided.

Relevant Concepts

• Producer Surplus: The producer surplus is calculated as: $\text{Producer Surplus} = \text{Selling Price} - \text{Cost of Production}$

Analysis and Detail

1. Without a specified cost, we cannot calculate the exact producer surplus.
2. If we assume a hypothetical cost of production, for example, $2000: $\text{Producer Surplus} = 2800 - 2000 = 800$

Verify and Summarize

• The producer surplus can vary greatly depending on what Avi's actual cost is. If Avi's cost was $2500, then: $\text{Producer Surplus} = 2800 - 2500 = 300$
• Without the exact cost, we cannot arrive at a definitive answer.

Final Answer

Avi's producer surplus cannot be definitively calculated without knowing his cost of production; it is the difference between $2800 and Avi's minimum acceptable price.