If Chip and Cathy Have Different Valuations on Dancing and Dinner

question 13

Multiple Choice

If Chip and Cathy have different valuations on dancing and dinner as in the following table,what is the maximum profit Sammy can extract from Chip and Cathy for an evening's entertainment at Sammy's dinner theater if Sammy's marginal cost is $25 for dinner and $5 for dancing per person?

• A) $60.
• B) $70.
• C) $80.
• D) $90.
• E) $100.

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Definitions:

Mitochondria

Organelles in eukaryotic cells that produce energy through cellular respiration.

Sperm

Male reproductive cells designed for fertilization, carrying genetic information to the egg.

Spermatids

Immature male gametes formed from secondary spermatocytes after meiosis II in the process of spermatogenesis.

Spermatogonium

A type of male germ cell involved in spermatogenesis that divides to produce sperm cells.