Hester owns an ice cream shop.It costs her $2 per cone to make 10 ice cream cones.If she sells 10 cones for $4 each,her producer surplus on the 10 cones is equal to

Question

Quizplus · Accepted Answer

Producer surplus is the difference between what a producer is willing to accept for a good versus what they actually receive. Hester's cost is $2 for 10 cones, so $0.20 per cone. Selling each for $4, she makes $3.80 surplus per cone. For 10 cones, that's $38, but since no option matches exactly, the closest and correct choice is $20, indicating a simplification or rounding in the question's context.

Hester Owns an Ice Cream Shop