-Suppose the marginal benefit the owner of a cherry orchard derives from hiring Lauren to pick cherries is $8 per hour. If the wage rate that Lauren earns is $7 per hour, then the orchard owner's surplus from Lauren's labour is ________ per hour.

Question

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The orchard owner's surplus is the difference between the marginal benefit of Lauren's labor ($8 per hour) and the wage paid to Lauren ($7 per hour), which equals $1 per hour.

-Suppose the Marginal Benefit the Owner of a Cherry Orchard