There is a large market in Brisbane for home party entertainers (e.g. people who work as clowns, magicians, face painters, etc.). The market clearing price for the home party entertainers is $40 per hour. Assume that 157 home party entertainers are operating and each supplies 4 hours of labour a day. If the home party entertainers follow a linear, upward sloping supply curve and the smallest opportunity cost for offering their service is $29 per hour (when quantity supplied equals zero), what is the producer surplus per day for all home party entertainers to the nearest whole dollar figure (i.e. with no decimal places)?

There is a large market in Brisbane for home party entertainers (e.g. people who work as clowns, magicians, face painters, etc.). The market clearing price for the home party entertainers is $40 per hour. Assume that 157 home party entertainers are operating and each supplies 4 hours of labour a day. If the home party entertainers follow a linear, upward sloping supply curve and the smallest opportunity cost for offering their service is $29 per hour (when quantity supplied equals zero), what is the producer surplus per day for all home party entertainers to the nearest whole dollar figure (i.e. with no decimal places)?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter12: The Partial Equilibrium Competitive Model

Section: Chapter Questions

Problem 12.5P

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