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Anita Sharpens Knives in Her Spare Time for Extra Income

Question 308

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Anita sharpens knives in her spare time for extra income.Buyers of her service are willing to pay $3.50 per knife for as many knives as Anita is willing to sharpen.On a particular day,she is willing to sharpen the first knife for $2.00,the second knife for $2.50,the third knife for $3.00,and the fourth knife for $3.50.Assume Anita is rational in deciding how many knives to sharpen.Her producer surplus is


A) $3.50.
B) $3.00.
C) $2.00.
D) $0.50.

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