Nick Can Purchase Each Milkshake for $2

question 123

Multiple Choice

Nick can purchase each milkshake for $2. For the first milkshake purchased Nick is willing to pay
$4, for the second milkshake $3, for the third milkshake $2 and for the fourth milkshake $1. What is the value of Nick's consumer surplus for the milkshakes he buys?

• A) $9
• B) $10
• C) $2
• D) $3

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Definitions:

Income Statement

A financial statement that shows a company's financial performance over a specific period, detailing revenues, expenses, and profit or loss.

Balance Sheet

A financial report detailing a company's possessions, debts, and owner's equity at a particular moment.

Operating Cycle

The duration of time it takes for a company to purchase inventory, sell it, and convert the sale into cash.

Financial Data

Financial data consists of records, figures, and quantitative information related to the financial status, operations, and performance of an entity.