Find out amount of producer surplus generated in each of

Reference no: EM13392216

Determine the amount of producer surplus generated in each of the following situations.

(a) Dustin tries to sell his old cathode-ray TV on eBay. If he fails to sell it on eBay, he knows that his friend Raymond, who likes to tinker with electronics, will give him $10 for it. Dustin manages to sell it on eBay for $25.

(b) Al advertises his car for sale in the used-car section of Craigslist for $3,000 or best offer, but he is willing to selling the car for any price above $1,600.

i. The best offer he receives is $1,475, which he declines.

ii. The best offer he receives is $1,750, which he accepts.

Reference no: EM13392216

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