Table 7-6 -Refer to Table 7-6.You Have Two Essentially Identical Extra Tickets

question 430

Multiple Choice

Table 7-6

-Refer to Table 7-6.You have two essentially identical extra tickets to the Midwest Regional Sweet 16 game in the men's NCAA basketball tournament.The table shows the willingness to pay of the four potential buyers in the market for a ticket to the game.You hold an auction to sell the two tickets.Michael and Earvin each offer to pay $360 for a ticket,and you sell them the two tickets.What is the total consumer surplus in the market?

• A) $720
• B) $180
• C) $140
• D) $40

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Definitions:

Equivalent Units

A concept used in cost accounting to convert the amount of work done on partially finished goods into the number of fully finished units.

Weighted-average

A method used in accounting and finance to calculate an average that takes into account the varying degrees of importance of the numbers in the dataset.

Conversion

The process of changing raw materials into finished goods, or the conversion of currencies, data, or resources from one form to another.

Equivalent Units

A principle applied in process costing that transforms units of incomplete production into an equivalent number of units as if they were fully completed.