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ehidna [41]
4 years ago
10

Muddy’s Bakery and Lilly’s Sweetshop both sell cupcakes. The market price of one chocolate cupcake is $2.50. Muddy’s is willing

to sell a cupcake for as little as $1.65; Lilly’s is willing to sell a cupcake for as little as $1.75. What is the total producer surplus for the two firms?
Business
1 answer:
Minchanka [31]4 years ago
6 0

Answer:

$1.6

Explanation:

Muddy´s: $2.5-$1.65=0.85

Lilly´s_ $2.5-$1.75=0.75

0.85+0.75=1.6

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