-Refer to Exhibit 5-3 Which Shows the Demand and Supply

question 8

Multiple Choice

-Refer to Exhibit 5-3 which shows the demand and supply of a college athlete.Suppose that NCAA rules limit the amount that the college can pay this athlete,such that their payment can not exceed the cost of attending the college (currently $8,000) .The impact of this ruling would be a loss of income to the athlete of __________ and an equal gain in consumers' surplus to the college represented by ________________.

• A) $2,000; area 2
• B) $8,000; area 3
• C) $10,000; area 2 + 3
• D) $2,000; area 1 + 2

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Definitions:

Managerial Strategy

The set of actions, plans, and policies devised by management to achieve competitive advantage and meet organizational goals.

Differentiation

The process of distinguishing a product or service from others to make it more attractive to a particular target market.

Cost

The amount of money required to purchase something or the expense associated with producing a service or carrying out a project.

Business Strategies

Comprehensive plans crafted by organizations to achieve competitive advantage, meet customer needs, and ensure long-term profitability and growth.