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Mountain River Adventures Offers Whitewater Rafting Trips Down the Colorado

Question 68

Essay

Mountain River Adventures offers whitewater rafting trips down the Colorado River.It costs the firm
$100 for the first raft trip per day, $120 for the second, $140 for the third, and $160 for the fourth.If the market price for a raft trip is $150, Mountain River Adventures will offer trips per day and will
have producer surplus equal to _.
A.3; $90
B.3; $10
C.2; $220
D.4; $80

Correct Answer:

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