Reference: Ref 14-6 (Table: Willingness to Pay) Refer to the Table

question 13

Multiple Choice

Reference: Ref 14-6 (Table: Willingness to Pay) Refer to the table. Assume the firm has zero costs. If the firm were to set individual prices for each of the two goods, how much total profit does it earn from Good B?

• A) $70
• B) $30
• C) $100
• D) $120

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Definitions:

Liability Account

An accounting record of amounts owed by a business to creditors, typically categorized as current or long-term liabilities.

Bank Service Charge

Fees charged by banks for handling specific types of transactions, account maintenance, or services rendered.

Note Receivable

A written promise that requires one party to pay a specified sum of money to another party on a set date or on demand.

Depositor's Account

A financial account held at a bank or financial institution, into which a depositor can deposit and withdraw money.