2. Determine the amount of producer surplus generated in each of the following situations. David lists his talking Vin Scully Bobblehead on eBay. He sets a minimum acceptable price, known as his reserve price, of $75. After five days of bidding, the final high bid is exactly $75. b. Jade advertises her car for sale in the used-car section of the student newspaper for $2,000, but she is willing to sell the car for any price higher than $1,500. The best offer she gets is $1,200. c. Ryan likes his job so much as a Chief of Staff for Andrew Yang's Campaign that he would be willing to do it for free. However, his annual salary is $80,000. a.
2. Determine the amount of producer surplus generated in each of the following situations. David lists his talking Vin Scully Bobblehead on eBay. He sets a minimum acceptable price, known as his reserve price, of $75. After five days of bidding, the final high bid is exactly $75. b. Jade advertises her car for sale in the used-car section of the student newspaper for $2,000, but she is willing to sell the car for any price higher than $1,500. The best offer she gets is $1,200. c. Ryan likes his job so much as a Chief of Staff for Andrew Yang's Campaign that he would be willing to do it for free. However, his annual salary is $80,000. a.
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter10: Externalities
Section: Chapter Questions
Problem 6PA: The many identical residents of Whoville love drinking Zlurp. Each resident has the following...
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Transcribed Image Text:2. Determine the amount of producer surplus generated in each of the following situations.
a. David lists his talking Vin Scully Bobblehead on eBay. He sets a minimum acceptable
price, known as his reserve price, of $75. After five days of bidding, the final high bid is
eхactly $75.
b. Jade advertises her car for sale in the used-car section of the student newspaper for
$2,000, but she is willing to sell the car for any price higher than $1,500. The best offer
she gets is $1,200.
c. Ryan likes his job so much as a Chief of Staff for Andrew Yang's Campaign that he
would be willing to do it for free. However, his annual salary is $80,000.
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