Scenario 8-1
Ryan would be willing to pay as much as $100 per week to have his house cleaned. Tammy's opportunity cost of cleaning Ryan's house is $70 per week.
-Refer to Scenario 8-1.If Tammy cleans Ryan's house for $80,Tammy's producer surplus is

Question

Quizplus · Accepted Answer

Tammy's producer surplus is the difference between the price she receives for cleaning Ryan's house and her opportunity cost. In this case, her opportunity cost is $70, and if she cleans Ryan's house for $80, her producer surplus would be $10 ($80 - $70 = $10).

Scenario 8-1 Ryan Would Be Willing to Pay as Much as $100