Suppose the marginal benefit the owner of a cherry orchard derives from hiring Lauren to pick cherries is $8 per hour.If the wage rate that Lauren earns is $7 per hour,then the orchard owner's surplus from Lauren's labor is ________ per hour.
A) $7
B) $15
C) $1
D) $8
E) $0

Question

Quizplus · Accepted Answer

The orchard owner's surplus is the difference between the marginal benefit and the wage rate, which is $8 - $7 = $1 per hour.

Suppose the Marginal Benefit the Owner of a Cherry Orchard