1.1. Consider the market for cheese-stuffed jalapeno peppers. There are two producers, Cara and Jamie, and their costs of producing each pepper are given in the accompanying table.

(Neither is willing to produce more than 4 peppers at any price.)

Use the table (i) to construct the supply schedule for peppers for prices of $0.00, $0.10, and so on, up to $0.90, and (ii) to calculate the total producer surplus when the price of a pepper is $0.70.

Transcribed Image Text:

Quantity Cara's Jamie's of peppers cost cost 1st pepper $0.10 $0.30 2nd pepper 0.10 0.50 3rd pepper 0.40 0.70 4th pepper 0.60 0.90