The Following Table Describes the Reservation Prices and Four Bids

question 9

Multiple Choice

The following table describes the reservation prices and four bids for an auction of three tickets to the recent Madonna concert.
If the marginal cost of providing a seat for one more Madonna fan is $0,the total producer surplus that results from this auction is:

• A) $0.
• B) $297.
• C) $1,803.
• D) $2,100.
• E) none of the above.

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Definitions:

Fixation

(1) in thinking, the inability to see a problem from a new perspective; an obstacle to problemsolving. (2) in personality theory, according to Freud, a lingering focus of pleasure-seeking the developing human organism from about 2 weeks after fertilization through the secondmonth

Divergent Thinking

A thought process or method used to generate creative ideas by exploring many possible solutions.

New Perspective

Fresh outlook or approach towards understanding or addressing an issue or concept.

Heuristics

Simple, efficient rules or guidelines used to make quick decisions or solve problems.