(Table: Customer Valuations for Lawn Services I) The table shows customer valuations for different lawn services. The marginal cost of lawn cutting is $400, and the marginal cost of fertilizing is $200.
Suppose the lawn service bundles its Lawn Cutting and Fertilizing. The producer surplus earned from bundling is $____.
A) 800
B) 900
C) 1,250
D) 1,200

Question

(Table: Customer Valuations for Lawn Services I) The table shows customer valuations for different lawn services.  The marginal cost of lawn cutting is $400, and the marginal cost of fertilizing is $200.
Suppose the lawn service bundles its Lawn Cutting and Fertilizing. The producer surplus earned from bundling is $____.
A) 800 
B) 900 
C) 1,250 
D) 1,200

Quizplus · Accepted Answer

The Answer of (Table: Customer Valuations for Lawn Services I) The table shows customer valuations for different lawn services.  The marginal cost of lawn cutting is $400, and the marginal cost of fertilizing is $200.
Suppose the lawn service bundles its Lawn Cutting and Fertilizing. The producer surplus earned from bundling is $____.
A) 800 
B) 900 
C) 1,250 
D) 1,200

(Table: Customer Valuations for Lawn Services I) the Table Shows