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
Well, let's crunch some numbers and solve this math puzzle. We know that the total cost (TC) of making 50 glasses of lemonade is $0.05 * 50 = $2.50.
The producer surplus (PS) is given as $12.50. We also know that the selling price (P) multiplied by the number of glasses (50) should equal the total producer surplus plus the total cost:
P * 50 = PS + TC
P * 50 = $12.50 + $2.50
P * 50 = $15.00
Now, we can solve for P by dividing both sides of the equation by 50:
P = $15.00 / 50
P = $0.30
So, Marylyn and Rebecca sold each glass of lemonade for $0.30, which means the correct answer is d. $0.30.
Now, try not to spill that lemonade while you celebrate getting the answer right!
To solve for P, we can use the given equation for surplus:
Surplus = P * 50 - TC = 12.50
First, let's substitute the value of TC into the equation:
Surplus = P * 50 - (0.05 * 50)
Simplifying further:
Surplus = P * 50 - 2.50
Now we have the equation:
P * 50 - 2.50 = 12.50
To isolate P, we can add 2.50 to both sides of the equation:
P * 50 = 12.50 + 2.50
P * 50 = 15
Next, divide both sides of the equation by 50:
P = 15 / 50
Simplifying:
P = 0.30
Therefore, Marylyn and Rebecca sold each glass for $0.30, which corresponds to option d.
To solve this multiple-choice question using algebra, you need to set up an equation.
Let's define the selling price per glass as P.
The total cost (TC) to make 50 glasses is given as $0.05 per glass:
TC = 0.05 * 50 = $2.50
The producer surplus is the revenue minus the total cost:
Surplus = P * 50 - TC = $12.50
Now, we can write the equation:
P * 50 - $2.50 = $12.50
To solve for P, isolate the P:
P * 50 = $12.50 + $2.50
P * 50 = $15.00
P = $15.00 / 50
P = $0.30
Therefore, the answer is option d. $0.30.