The following table shows Carly and Emma's maximum willingness to pay for paint supplies and drawing supplies from the same seller. Assuming MC=0, how much producer surplus does the firm earn if they price the goods individually? How much producer surplus does the firm earn if they bundle the goods? Maximum Willingness Carly To Pay Emma Paint $15.00 $60.00 Supplies Drawing $50.00 $30.00 Supplies a. $120; $130 b. $110; $130 c. $120; $90 d. $110; $150

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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The following table shows Carly and Emma's maximum willingness to pay for paint supplies and drawing supplies
from the same seller. Assuming MC=0, how much producer surplus does the firm earn if they price the goods
individually? How much producer surplus does the firm earn if they bundle the goods?
Maximum Willingness
Carly
To Pay
Emma
Paint
$15.00
$60.00
Supplies
Drawing
$50.00
$30.00
Supplies
a. $120; $130
b. $110; $130
c. $120; $90
d. $110; $150
Transcribed Image Text:The following table shows Carly and Emma's maximum willingness to pay for paint supplies and drawing supplies from the same seller. Assuming MC=0, how much producer surplus does the firm earn if they price the goods individually? How much producer surplus does the firm earn if they bundle the goods? Maximum Willingness Carly To Pay Emma Paint $15.00 $60.00 Supplies Drawing $50.00 $30.00 Supplies a. $120; $130 b. $110; $130 c. $120; $90 d. $110; $150
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