question archive If the cost for Adil to wash a car is Rs
If the cost for Adil to wash a car is Rs
Subject:EconomicsPrice:2.86 Bought3
If the cost for Adil to wash a car is Rs. 50, for Ali to wash a car is Rs. 60, and for Adeel to wash a car is
Rs. 70, what is the value of their producer surplus if each wash a car and the price for washing a car is Rs.
100?
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Cost for Adil to wash a car = Rs 50
Cost for Ali to wash a car = Rs 60
Cost for Adeel to wash a car = Rs 70
Price of washing a car = Rs 100
The producer surplus is the surplus amount received by the producers or the sellers minus the lowest price they will accept for their goods or service.
Producer Surplus for Adil to wash a car = Rs 100 - Rs 50
Producer Surplus for Adil to wash a car = Rs 50
Producer Surplus for Ali to wash a car = Rs 100 - Rs 60
Producer Surplus for Ali to wash a car = Rs 40
Producer Surplus for Adeel to wash a car = Rs 100 - Rs 70
Producer Surplus for Adeel to wash a car = Rs 30
Total value of their producer surplus if each wash a car and the price of washing a car is Rs 100 = Producer Surplus for Adil to wash a car + Producer Surplus for Ali to wash a car + Producer Surplus for Adeel to wash a car
Total value of their producer surplus if each wash a car and the price of washing a car is Rs 100 = Rs (50 + 40 + 30)
Total value of their producer surplus if each wash a car and the price of washing a car is Rs 100 = Rs 120.
