Use the Following to Answer Questions: Table: Willingness to Pay

question 132

Multiple Choice

Use the following to answer questions: Table: Willingness to Pay $$\begin{array} { l c c } \hline { \text { Maximum Willingness to Pay for Good A and Good B } } \\\hline & \text { John } & \text { Mary } \\\hline \text { Good A } & \$ 90 & \$ 35 \\\text { Good B } & \$ 30 & \$ 70 \\\hline\end{array}$$
-(Table: Willingness to Pay) Refer to the table. If the firm were to engage in bundling, its profits would increase by how much relative to setting individual prices for each good?

• A) $65
• B) $225
• C) $50
• D) $210

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Definitions:

Net Investment

The total amount spent on new capital assets minus the depreciation of existing assets, reflecting the actual increase in an entity's capital stock.

Vicious Circle Of Poverty

A problem common in some developing countries in which their low per capita incomes are an obstacle to realizing the levels of savings and investment needed to achieve rates of growth of output that exceed their rates of population growth.

Low Saving

A condition characterized by individuals or populations saving a minimal portion of their income, potentially impacting investment and economic growth.

Low Investment

A scenario characterized by minimal input of capital or resources towards business growth, expansion, or development activities.