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Marcus paid $35 to buy a potato cannon, a cylinder that shoots potatoes hundreds of feet. He was willing to pay $45. When Marcus’s friend Starling learns that Marcus bought a potato cannon, he asks Marcus
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Marcus paid $35 to buy a potato cannon, a cylinder that shoots potatoes hundreds of feet. He was willing to pay $45. When Marcus’s friend Starling learns that Marcus bought a potato cannon, he asks Marcus if he will sell it for $60, and Marcus agrees. Starling is thrilled, because he would have paid Marcus up to $80 for the cannon. Marcus is also delighted.

User Daniel Huckstep
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Answer:

The question is incomplete; Determine the consumer surplus from the original purchase and the additional surplus generated by the resale of the cannon.

Marcus' consumer surplus= $45-$35= $10

Starling's consumer surplus= $80-60= $20

Marcus' producer surplus = $60-35 = $25

Step-by-step explanation:

User Per Mikkelsen
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