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:

Direct Labor Cost

Direct labor cost refers to the expense associated with employees who are directly involved in the production of goods or services, such as wages for assembly line workers.

Cell Phone Manufacturer

A company that designs, produces, and sells mobile phones and related accessories.

Direct Materials Cost

The expense incurred for raw materials that are directly involved in the manufacturing process of a product.

Automobile Manufacturer

A company engaged in the design, production, marketing, and sales of motor vehicles.