The concept of producer surplus is essential in understanding market dynamics, particularly in the context of supply and demand. Producer surplus is defined as the difference between what producers are willing to accept for a good or service versus what they actually receive. It is represented graphically as the area below the market price and above the supply curve.

In this example, we analyze the market for funky fresh rhymes, where the market price is set at $3,000. To determine the producer surplus, we need to identify the area of the triangle formed between the market price and the supply curve. The base of this triangle is the difference between the market price and the minimum price at which producers are willing to supply the good, while the height is the quantity supplied at that price.

To calculate the base, we subtract the minimum price (in this case, $500) from the market price ($3,000):

Base = $3,000 - $500 = $2,500.

The height of the triangle corresponds to the quantity supplied at the minimum price, which is given as 750 units. Thus, we can now apply the formula for the area of a triangle:

Area = \(\frac{1}{2} \times \text{Base} \times \text{Height}\)

Substituting the values we found:

Area = \(\frac{1}{2} \times 2,500 \times 750\)

Calculating this gives us:

Area = \(\frac{1}{2} \times 1,875,000 = 937,500\).

Therefore, the producer surplus at a price of $3,000 is $937,500. This value reflects the additional benefit producers receive from selling at a higher market price compared to their minimum acceptable price.