In the short run, if a firm operates, it earns a profit of $500. The fixed costs of the firm are $100. This firm has a producer surplus of

1. ### Break Down the Problem

To find the producer surplus, we need to understand its components:

1. Profit earned by the firm.
2. Fixed costs of the firm.
3. The relationship between profit, fixed costs, and producer surplus.

2. ### Relevant Concepts

Producer surplus is calculated as the difference between the total revenue and the variable costs. However, in this context, we can use the relationship: $\text{Producer Surplus} = \text{Profit} + \text{Fixed Costs}$

3. ### Analysis and Detail

1. Identify the given values:

   • Profit = $500
   • Fixed Costs = $100

2. Calculate the Producer Surplus: $\text{Producer Surplus} = \text{Profit} + \text{Fixed Costs}$ $\text{Producer Surplus} = 500 + 100 = 600$

4. ### Verify and Summarize

The calculation indicates that the producer surplus includes both the profit and the fixed costs. Thus, we arrived at a total producer surplus of $600 by adding$500 of profit to the $100 of fixed costs.

Final Answer

The producer surplus of the firm is $600.