The following table shows Carly and Emma's maximum willingness to pay for paint supplies and drawing supplies from the same seller. Assuming MC=0, how much producer surplus does the firm earn if they price the goods individually? How much producer surplus does the firm earn if they bundle the goods? Maximum Willingness Carly To Pay Emma Paint $15.00 $60.00 Supplies Drawing $50.00 $30.00 Supplies a. $120; $130 b. $110; $130 c. $120; $90 d. $110; $150
The following table shows Carly and Emma's maximum willingness to pay for paint supplies and drawing supplies from the same seller. Assuming MC=0, how much producer surplus does the firm earn if they price the goods individually? How much producer surplus does the firm earn if they bundle the goods? Maximum Willingness Carly To Pay Emma Paint $15.00 $60.00 Supplies Drawing $50.00 $30.00 Supplies a. $120; $130 b. $110; $130 c. $120; $90 d. $110; $150
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter7: Consumers, Producers, And The Efficiency Of Markets
Section: Chapter Questions
Problem 1PA
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