Kristi sells purses.Her cost is $35 per purse.On a certain day,she sells 12 purses,and her producer surplus for that day amounts to $180.Kristi sold each purse for
A)$65.
B)$50.
C)$45.
D)$53.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between what Kristi sells the purses for and her cost. If she sold each purse for $50, her surplus per purse would be $15 ($50 - $35). For 12 purses, this results in a total surplus of $180 (12 x $15).

Kristi Sells Purses