According to the information provided, the amount of surplus value that accrues to Dean, Jess, Brent and Frida from their day surfing is:
A)$250
B)$126
C)$124
D)$146

Question

Quizplus · Accepted Answer

The total revenue generated is $876 ($292/person * 3 persons). From this, we deduct the cost of surfboard rental ($50) and gas ($100), leaving us with $726. We then divide this by the number of hours they spent surfing (9), giving us an hourly revenue of $80.67. Multiplying this by the total time spent surfing by all four people (12 hours), we get a total value of $968. Deducting the cost of rental and gas, we get a total surplus value of $818. Dividing this by the number of people (4), we get a surplus value of $204.5. However, Jess had to pay for the gas and so she only receives $78. Thus, the total surplus value for Dean, Jess, Brent, and Frida is $126 ($204.5 - $78).

According to the Information Provided, the Amount of Surplus Value