Table 7-5 For Each of Three Potential Buyers of Oranges, the Table

question 458

Multiple Choice

Table 7-5
For each of three potential buyers of oranges, the table displays the willingness to pay for the first three oranges of the day. Assume Allison, Bob, and Charisse are the only three buyers of oranges, and only three oranges can be supplied per day.
-Refer to Table 7-5. If the market price of an orange is $0.65, then consumer surplus amounts to

• A)$3.90.
• B)$6.75.
• C)$3.60.
• D)$7.50.

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Definitions:

Investment Turnover

A measure of a company's efficiency in using its assets to generate sales or revenue, calculated by dividing sales by the average total assets.

DuPont Formula

A method that breaks down the return on equity into three component parts—profit margin, asset turnover, and financial leverage—to analyze a company's financial performance.

Return on Investment

A financial metric used to evaluate the efficiency or profitability of an investment, calculated by dividing the profit from an investment by its cost.

Investment Centers

Divisions or departments within a company responsible for generating revenue and controlling costs.