Econ MC
posted by Econ .
I am having trouble solving this MC.
Marylyn and Rebecca sell lemonade on the corner. Each glass costs them $0.05 to make. At the end of the day, they have sold 50 glasses and received a total producer surplus of $12.50. That would mean that Marylyn and Rebecca sold each glass for
a. $0.15.
b. $0.20.
c. $0.25.
d. $0.30.
Use algebra. total cost = TC = .05*50.
Surplus = P*50  TC = 12.50 Solve for P

d. $0.30