Pule purchases four bottles of bathroom cleaner for $3 each. The maximum prices she would have been willing to pay for each bottle are $6 for the first bottle, $5 for the second bottle, $4 for the third bottle, and $3 for the fourth bottle. The marginal cost of producing the bottles is $2.50. What is Pule's consumer surplus on the fourth bottle of bathroom cleaner?
A)$6
B)$1
C)$.50
D)$0

Question

Quizplus · Accepted Answer

Pule's consumer surplus on the fourth bottle is $0 because she paid exactly what she was willing to pay for it ($3).

Pule Purchases Four Bottles of Bathroom Cleaner for $3 Each