The Tables Below Show Reservation Values of Buyers and Sellers

question 26

Multiple Choice

The tables below show reservation values of buyers and sellers in a market. There are three buyers and two sellers. Each buyer's reservation values for the fourth unit and above are negative, and each seller can produce at most four units.

-Refer to the tables above.Suppose that the price is $34 per unit.What is the sum of the three buyers' surplus? What is the sum of the two sellers' surplus? What is the social surplus?

• A) Sum of buyers' surplus = $77; Sum of sellers' surplus = $115; Social surplus = $187
• B) Sum of buyers' surplus = $92; Sum of sellers' surplus = $95; Social surplus = $187
• C) Sum of buyers' surplus = $66; Sum of sellers' surplus = $105; Social surplus = $171
• D) Sum of buyers' surplus = $108; Sum of sellers' surplus = $78; Social surplus = $186

Discuss the importance of virtue and characteristics, such as trust and empathy, in ethical business conduct.

Recognize the role of justice types (procedural, interactional) in ethical considerations.

Examine the impact of moral philosophies on personal versus work-related decisions.

Clarify misconceptions associated with major economic and ethical theories.

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Definitions:

Volcanic Mountain Belt

A geographical area consisting of numerous volcanoes which are formed along plate boundaries or over hotspots in Earth's crust.

Tectonic Events

are significant movements of the Earth's lithosphere, including earthquakes, volcanic eruptions, and the formation of mountain ranges, driven by plate tectonics.

Orogeny

The formation of mountains or the time period during which tectonic activity causes deformation and forms mountains.

Island Arc

A chain of volcanically active islands arranged in an arc, situated along the boundary of tectonic plates, generally forming over a subducting plate.