Scenario 8-1
Assume that Kierra cleans Cate's house weekly for $100.Cate would be willing to pay as much as $125 weekly to have her house cleaned.Kierra's opportunity cost is $80.
-Refer to Scenario 8-1.If Kierra cleans Cate's house,what is the producer surplus

Question

Quizplus · Accepted Answer

Producer surplus is calculated as the difference between the price received by the producer and the producer's opportunity cost. In this case, Kierra receives $100 and her opportunity cost is $80, so the producer surplus is $100 - $80 = $20.

Scenario 8-1 Assume That Kierra Cleans Cate's House Weekly for $100.Cate Would