Reference Ref 1017 Figure 108 Reference Ref 1017 Figure 108

Reference: Ref 10-17

Figure 10.8

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Reference: Ref 10-17

(Figure 10.8) If the golf instructor set a single price to maximize profit, she would earn producer surplus of ______. If she set a price of $120 an hour for the first four hours of instruction and $80 an hour for each hour of instruction beyond four hours, she would earn producer surplus of ______.

	$480; $960
	$500; $800
	$320; $400
	$80; $120

$480 and $960

case A) 120*4 = 480

Case b) 120*4 +80*6 = 480+480 = 960

Reference: Ref 10-17 Figure 10.8 Reference: Ref 10-17 (Figure 10.8) If the golf instructor set a single price to maximize profit, she would earn producer surplu

Reference Ref 1017 Figure 108 Reference Ref 1017 Figure 108

Solution

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