The table sets out the price Rashid is prepared to pay for each successive cake and the cost of producing it. If the price is $0.50 and Rashid purchases four cakes, what is the monetary value of the consumer surplus and the producer surplus?
- Aconsumer surplus 0, producer surplus 0
- Bconsumer surplus 0.15, producer surplus 0.10
- Cconsumer surplus 0.85, producer surplus 0.60
- Dconsumer surplus 2.85, producer surplus 1.40