If You Are Willing to Pay No More Than $4

question 49

Multiple Choice

If you are willing to pay no more than $4 for a slice of pizza and the price of a slice of pizza is $4,then

• A) if you buy it, you would be cheated because you would realize no total benefit from the purchase.
• B) you buy it but you get no marginal benefit from the purchase.
• C) you will not buy it.
• D) you buy it but you get no consumer surplus from the purchase.
• E) you might buy it depending on how the slice's marginal benefit compares to its price.

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Definitions:

Deposit In Transit

Refers to money that has been received and recorded by a business but has not yet been recorded by the bank.

Check Printing Charge

A fee charged by banks or financial institutions for printing and providing checks for an account holder's use.

Note Collected

A financial transaction where a receivable note is received or paid off, often reflecting incoming cash flow from a debtor.

Petty Cash

A small amount of cash on hand used for covering minor expenses.