Juanita Purchased a Polar Express Train Set from Lionel Trains

question 113

Multiple Choice

Juanita purchased a Polar Express train set from Lionel Trains. She paid $240 for the set and received consumer surplus of $125. What was Juanita's willingness to pay for the train set?

• A) $115
• B) $240
• C) $125
• D) $365

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Definitions:

Foreign Competition

Economic rivalry that businesses face from producers located in other countries.

Net Loss

The amount by which total expenses exceed total revenues for a business or individual, indicating a negative financial performance.

Deadweight Loss

Deadweight Loss is the loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable.

Infant Industry

The infant industry argument supports protecting emerging domestic industries from international competition until they become competitive internationally.