Question

If one shuttle provider is willing to drive to the resort for $20, how much

producer surplus does this individual shuttle driver receive when the market
is at equilibrium? Show your work.

Answer 1

To find the producer surplus, we need to know the market price and the cost of production. If the market price is at equilibrium, it means that the market price is equal to the price that the shuttle driver is willing to supply the service for, which is $20 in this case.

So, the producer surplus can be calculated as follows:

Producer surplus = Market price - Cost of production

Since we don't have information on the cost of production, we can't calculate the producer surplus for this individual shuttle driver.