Question

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

Answer 1

For a producer surplus of $180 coming from sales of 12 units, this would be the result from (180 / 12), or $15 per purse. Taking the cost she has to pay for each unit, $35, and adding the $15 surplus to each, this leads to a sale price of (35 + 15), or $50 per purse.