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Sladkaya [172]
3 years ago
6

Ronnie operates a lawn-care service. On each day, the cost of mowing the first lawn is $15, the cost of mowing the second lawn i

s $25, and the cost of mowing the third lawn is $40. His producer surplus on the first three lawns of the day is $100. If Ronnie charges all customers the same price for lawn mowing, that price is
Business
1 answer:
OlgaM077 [116]3 years ago
6 0

Answer:

$60

Explanation:

The computation of price is shown below:-

Producer Surplus = Price paid by consumers - Production cost

$100 = Price - ($15 + $25 + $40)

$100 = Price - $80

Price for all = $100 + $80

= $180

Price Per consumer = Price for all ÷ First three lawns

= $180 ÷ 3

= $60

Therefore, for computing the price per consumer we simply divide first three lawn by price for all.

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