Tim mows neighborhood lawns for extra money. Suppose that he would be willing to mow one lawn for $10 , a second lawn for $15 , and a third lawn for $24. Also suppose that three neighbors are interested in having their lawns mowed. Mrs. Jones would be willing to pay $31 to have her lawn mowed, Mr. Wilson would be willing to pay $30 , and Ms. Smith would be willing to pay $24. If Tim offers to mow lawns for $24 each, what will be his producer surplus? $ nothing. (Enter a numeric response using an integer.)

Question

Business

Gamble

25 March, 10:52

Tim mows neighborhood lawns for extra money. Suppose that he would be willing to mow one lawn for $10 , a second lawn for $15 , and a third lawn for $24. Also suppose that three neighbors are interested in having their lawns mowed. Mrs. Jones would be willing to pay $31 to have her lawn mowed, Mr. Wilson would be willing to pay $30 , and Ms. Smith would be willing to pay $24. If Tim offers to mow lawns for $24 each, what will be his producer surplus? $ nothing. (Enter a numeric response using an integer.)

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Answers (1)

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Amy Lucas · Answer 1

The producer surplus is $23

Explanation:

Producer surplus: The producer surplus show a difference between the producer willing to supply and the received price

In mathematically,

Producer surplus = (willing to supply - received price by the consumer)

So,

The producer surplus would equal to

= ($24 - $10) + ($24 - $15) + ($24 - $24)

= 14$ + $9 + $0

= $23