Table 7-4 the Numbers in Table 7-1 Reveal the Maximum Willingness to Willingness

question 56

Multiple Choice

Table 7-4
The numbers in Table 7-1 reveal the maximum willingness to pay for a ticket to a Chicago Cubs vs. St. Louis Cardinal's baseball game at Wrigley Field.
-Refer to Table 7-4. If tickets sell for $40 each, then what is the total consumer surplus in the market?

• A)$90.
• B)$30.
• C)$70.
• D)$110.

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Definitions:

Minimum-cost Production

A principle in economics where goods and services are produced at the lowest possible cost, maximizing efficiency and resource use.

Normal Profit Rate

Zero economic profit, providing just the competitive rate of return on the capital (and labor) of owners. An above-normal profit will draw more entry into the market, whereas a below-normal profit will lead to an exit of investors and capital.

Contestable Market

A market where companies can enter and exit freely, with low barriers to entry and exit, leading to competitive prices and efficient outcomes.

Low Entry And Exit

Refers to markets where there are minimal barriers to starting or exiting a business, leading to high levels of competition and innovation.