Caroline Sharpens Knives in Her Spare Time for Extra Income

question 7

Multiple Choice

Caroline sharpens knives in her spare time for extra income.Buyers of her service are willing to pay $2.95 per knife for as many knives as Caroline is willing to sharpen.On a particular day,she is willing to sharpen the first knife for $2.00,the second knife for $2.25,the third knife for $2.75,and the fourth knife for $3.50.Assume Caroline is rational in deciding how many knives to sharpen.Her producer surplus is

• A)$0.95.
• B)$1.15.
• C)$1.30.
• D)$1.85.

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Definitions:

Explanatory Theories

Theories that aim to explain how and why phenomena occur, often by identifying causal relationships and underlying principles.

Personal Values

Deeply held beliefs that guide an individual's behavior and decision-making, reflecting what is important to them in life.

Research Methods

Various systematic techniques and tools used to gather, analyze, and interpret data in order to draw meaningful conclusions in scientific studies.

Fixed Mindset

The belief that abilities and intelligence are static and cannot be changed through effort.