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xxMikexx [17]
4 years ago
6

Miranda and Jason are in the tutoring business. Miranda is willing to tutor as long as she gets $20, while Jason will not tutor

unless he gets $35. If the most that someone would pay for tutoring is $30, how much producer surplus is earned?a) Miranda = $10; Jason = -$5b) Miranda = $20; Jason = -$5c) Miranda = $10; Jason = $0d) Miranda = $20; Jason =$0
Business
1 answer:
erica [24]4 years ago
8 0

Answer:

C

Explanation:

Producer's surplus is the gain a producer gain by selling at market price instead of selling at the smallest price the producer was willing to sell.

Miranda was willing to tutor at $ 20 but the market price of  tutoring was $ 30 therefore her producer surplus = 30 - 20 = $ 10 while for Jason the price he was willing to tutor was more than the market price and therefore he therefore has $ 0 producer surplus.

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