For each of the following situations, determine the amount of Producer Surplus generated a. Paul lists his old iPod for sale on an online auction. He sets a minimum acceptable price, known as his reserve price, of $75. After five days of bidding, the final high bid is exactly $75. He accepts the bid. b. Mario advertises his car for sale online for $5000, but he is willing to sell the car for any price higher than $2500. The best offer he gets is $2200, which he declines. c. Mark plays the organ during the Ottawa Senators' home games and he likes his job so much that he would be willing to do it for free. However, his annual salary is $30,000.
For each of the following situations, determine the amount of Producer Surplus generated a. Paul lists his old iPod for sale on an online auction. He sets a minimum acceptable price, known as his reserve price, of $75. After five days of bidding, the final high bid is exactly $75. He accepts the bid. b. Mario advertises his car for sale online for $5000, but he is willing to sell the car for any price higher than $2500. The best offer he gets is $2200, which he declines. c. Mark plays the organ during the Ottawa Senators' home games and he likes his job so much that he would be willing to do it for free. However, his annual salary is $30,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Q37
For each of the following situations, determine the amount of Producer Surplus generated
a. Paul lists his old iPod for sale on an online auction. He sets a minimum acceptable price, known as his reserve price, of $75. After five days of bidding, the final high bid is exactly $75. He accepts the bid.
b. Mario advertises his car for sale online for $5000, but he is willing to sell the car for any price higher than $2500. The best offer he gets is $2200, which he declines.
c. Mark plays the organ during the Ottawa Senators' home games and he likes his job so much that he would be willing to do it for free. However, his annual salary is $30,000.
b. Mario advertises his car for sale online for $5000, but he is willing to sell the car for any price higher than $2500. The best offer he gets is $2200, which he declines.
c. Mark plays the organ during the Ottawa Senators' home games and he likes his job so much that he would be willing to do it for free. However, his annual salary is $30,000.
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