Connie can clean windows in large office buildings at a cost of $1 per window.The market price for window cleaning is $3 per window.If Connie cleans 100 windows,her producer surplus is $100.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the market price and the cost of production. In this case, if Connie cleans 100 windows at a cost of $1 per window, her total cost would be $100. If the market price for window cleaning is $3 per window, the total revenue generated by cleaning 100 windows would be $300.

Therefore, her producer surplus would be $200 and not $100 as mentioned in the statement. Hence, the statement is false.

Connie Can Clean Windows in Large Office Buildings at a Cost