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Diana Is a Personal Trainer Whose Client Charles Pays $80

Question 68

Multiple Choice

Diana is a personal trainer whose client Charles pays $80 per hour-long session. Charles values this service at $100 per hour, while the opportunity cost of Diana's time is $75 per hour. The government places a tax of $10 per hour on personal trainers. Before the tax, what is the total surplus?


A) $25
B) $5
C) $0
D) $20

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