Diana Is a Personal Trainer Whose Client Charles Pays $80

question 172

Multiple Choice

Diana is a personal trainer whose client Charles pays $80 per hour-long session.Charles values this service at $100 per hour,while the opportunity cost of Diana's time is $75 per hour.The government places a tax of $10 per hour on personal trainers.Before the tax,what is the total surplus?

• A)$25
• B)$20
• C)$5
• D)$0

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