If you are willing to sell your lawn mowing business for $355,000 and someone offers you...

If you are willing to sell your lawn mowing business for $355,000 and someone offers you $320,000 for it, the transaction will generate:

There is no surplus created

b.	$35k worth of seller surplus and an unknown amount of buyer surplus
	c.	$35 k of both seller and buyer surplus
	d.	$35k of buyer surplu

Solutions

Expert Solution

You are willing to sell the business for 355000

The money you are offered = 320000

The money offered is less than your willingness to sell so you would not sell your business, therefore, no surplus is created

option(A)

Rahul Sunny answered 1 year ago

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