Econ

posted by .

At Nick's Bakery, the cost to make his homemade chocolate cake is $3 per cake. He sells three and
receives a total of $21 worth of producer surplus. Nick must be selling his cakes for
a. $2 each.
b. $7 each.
c. $8 each.
d. $10 each.

i can't figure this question out.

Producer surplus is price (P) less the minimum price the producer would be willing to sell ($3). So you know
3*P - $9 = 21. Ergo, P=$10.

Note: this assumes the $3 cost includes the amount Nick pays himself for his labor

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Fractionsss

    Thirty-five slices of chocolate cake were sold at the bake sale. If each slice was a tenth of a sake, how many cakes were sold?
  2. Microeconomics [Urgent!]

    I have an exam tomorrow and I really need to know how you get the following answers. Please show me! I know it's a lot of questions, but I don't understand how you get the answer... ------------------ 40. At Nick's Bakery, the cost …
  3. calculus

    You operate a bakery. You buy cakes from a supplier who charges you $5 per cake. Government regulations dictate that you can only charge a price between $10 and $20 per cake. Your research shows that if you were to charge $x per cake, …
  4. liberal arts

    mary and tom jointly buy the vanilla-chocolate cake for $20. Suppose that Mary values vanilla cake four times more than she values chocolate cake. Find the dollar value to Mary of each of the following pieces of the cake: a. the vanilla …
  5. homework math

    For every 20 cakes ordered from Barry's Bakery, 8 cakes ordered are chocolate. Which proportion can be used to determine x, the total number of cakes ordered from the bakery when 30 chocolate cakes have been ordered?
  6. Algebra

    Mary, Margaret, Ron and Nick are to share a sholarship. Ron receives 1/3 of the scholarship; Nick gets 1/4 of the scholarship; Mary receives the same as Nick, and Margaret receives $72,000. Find each person's share in the scholarship …
  7. statistics

    Four girls (say I, II, III and IV) are to rank 3 different types of cake (say A, B and C) in a blindfold test. Each girl ranks the three cakes as 1 (for the cake she likes the best), 2 and 3, and then the assigned ranks of each type …
  8. statistics

    Four girls (say I, II, III and IV) are to rank 3 different types of cake (say A, B and C) in a blindfold test. Each girl ranks the three cakes as 1 (for the cake she likes the best), 2 and 3, and then the assigned ranks of each type …
  9. Maths

    Please help me, Wendy went to a bakery to buy cakes and doughnuts. She spent $14 altogether on 30 cakes and doughnuts. Each cake cost 40 cents and each doughnut cost 50 cents. How many cakes and doughnuts did she buy?
  10. math

    A cake and three ice creams together cost $210. Mary bought a cake and two ice creams for $200. a) Calculate the cost of 1 ice cream b) the cost of the cake c) the cost of 3 cakes and 5 ice creams

More Similar Questions