The following table shows Carly and Emma's maximum willingness to pay for paint supplies and drawing suppliesfrom the same seller. Assuming MC=0, how much producer surplus does the firm earn if they price the goodsindividually? How much producer surplus does the firm earn if they bundle the goods?Maximum WillingnessCarlyTo PayEmmaPaint$15.00$60.00SuppliesDrawing$50.00$30.00Suppliesa. $120; $130b. $110; $130c. $120; $90d. $110; $150

Step 1: To find producer surplus, determine market demand for each good (individually and bundled),…

Answered: The following table shows Carly and…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Alice, Amber, and Andi make and sell pottery. Alice is willing to sell a 5 inch pot for $20, Amber is willing to sell a 5 inch pot for $22, and Andi is willing to sell a 5 inch pot for $46. If each of the ladies is able to sell one 5 inch pot for $50, what is their combined producer surplus? combined producer surplus: $ If the price of a 5 inch pot is $30, which of the ladies will sell their pots? Andi only Alice only Alice, Amber, and Andi Alice and Amber
Seller Willingness to sell Trinity $26 Paige $17 Carmen $10 The women in the table above all lead trail rides. Using the data in the table, calculate total producer surplus for Trinity, Paige, and Carmen if the price to lead trail rides is $18 per hour. 2$
Each rectangle on the graph corresponds to a particular seller in this market: blue (circe symbols) for Andrew, green (triangle symbols) for Beth, purple (diamond symbols) for Darnell, tan (dash symbols) for Eleanor, and orange (square symbols) for Jacques. (Note: The name labels are to the right of the corresponding segment on the supply curve.) Use the rectangles to shade the areas representing producer surplus for each person who is willing to sell a motor scooter at a market price of $70. (Note: If a person will not sell a motor scooter at the market price, indicate this by leaving their rectangle in its original position on the palette.) ? PRICE (Dollars per motor scooter) 160 140 120 100 180 60 40 20 0 0 Andrew 2 K Bet Darnell Jacques Eleanor 5 3 QUANTITY (Motor scooters) Market Price 6 7 8 ITI Andrew Beth Damell Eleanor 8 8 Jacques
Imagine you are the owner of the Omaha Surfboard Company. You have a branch in Omaha and in Long Beach CA. After some market research you find the following surfboard demand for each market, Omaha Demand: Qo = 1000 – 10P Long Beach Demand: QL = 1000 – 5P Combined/Total Demand: Q = 2000 – 15P Your marginal cost is constant at $40. a. Find your price and quantity if you treated the market as a single entity with a single price. What is your profit? (Hint: find Marginal Revenue and set equal to MC) b. If you treat each market separately, what is P and Quantity in each market, and final profit?
ed Graphically, producer surplus is measured as the area Multiple Choice under the demand curve and below the actual price. under the demand curve and above the actual price. above the supply curve and above the actual price. above the supply curve and below the actual price.
Suppose the following graph shows the demand for, and supply of, apartments in New York City. Use the black point (plus symbol) to indicate the equilibrium monthly rent and quantity of apartments in the absence of price controls. Then use the green point (triangle symbol) to fill the area representing consumers' surplus, and use the purple point (diamond symbol) to fill the area representing producers' surplus. MONTHLY RENT (Dollars per apartment) 2800 2600 2400 2200 2000 1800 0 Demand Supply 0.8 3.2 QUANTITY OF APARTMENTS (Millions per month) 1.6 2.4 4.0 Equilibrium A CS PS ?
The market demand function for corn is Qd = 19 - 5P The market supply function is QS = 5P - 4 both quantities measured in billions of bushels per year. Instructions: Round all quantities to the nearest whole number and prices to 2 decimal places. a. What is consumer surplus at the competitive market equilibrium? b. What is producer surplus at the competitive market equilibrium? c. What is aggregate surplus at this equilibrium?
Macmillan Learning Amazon has a "Lightning Deal" where it slashes the price of one item. At 3:15 p.m. today, they announced that the item was a new tablet with a sales price of $150 which is less than half the original price. The table contains the maximum willingness to pay of five college students wanting to buy a tablet on Amazon. Willingness to pay $500 $400 $300 $200 $100 Student Anthony Amanda Lily Francisco Max What is total consumer surplus for the five students? If the price increases from $150 to $350, what is the change in total consumer surplus? $ $
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Refer to Table 4-4. The table above lists the marginal cost of sunglasses by Miami Dade Shades, a firm that specializes in producing designer sunglasses. If the market price for a pair of Miami Dade Shades sunglasses is $175, producer surplus is $10. $35. $140. $230.

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