Determine the Amount of Producer Surplus Generated in Each of the Following

question 81

Essay

Determine the amount of producer surplus generated in each of the following situations.
a.Gordon lists his old electric train set for sale on an online auction.He sets a minimum acceptable price,known as his reserve price,of $75.After five days of bidding,the final high bid is exactly $75.He accepts the bid.
b.Francis advertises his car for sale online for $5000,but he is willing to sell the car for any price higher than $2500.The best offer he gets is $2200,which he declines
c.Lewis plays the organ during the Calgary Flames' home games and he likes his job so much that he would be willing to do it for free.However,his annual salary is $30,000.

---

Definitions:

Absorption

The process by which one substance is absorbed, or taken in and incorporated, into another, as when the body converts food or drugs into a form it can use.

Metabolize

The process by which living organisms transform food into energy and building blocks for cells, or breaking down of substances to excrete waste.

Body Systems

Organized groups of tissues that work together to perform complex functions for the body, such as the circulatory, digestive, and nervous systems.

Breast Milk

The milk produced by human mammary glands, specifically designed to nourish infants with necessary nutrients for growth and development.