If You Are Willing to Sell Your Lawn Mower Business

question 41

Multiple Choice

If you are willing to sell your lawn mower business for $355,000 and someone offers you $420,000 for it,this transaction will generate:​

• A)​There is no surplus created
• B)$65,000 worth of seller surplus and unknown amount of buyer surplus
• C)$30,000 worth of buyer surplus and $35,000 of seller surplus
• D)​$65,000 worth of buyer surplus and unknown amount of seller surplus

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Definitions:

Interpreting Sentences

The cognitive process of understanding the meaning of words in written or spoken form, constructing their syntactical relationships.

Noam Chomsky

An influential linguist, philosopher, and cognitive scientist known for his theory of generative grammar and criticism of behaviorism.

Stimuli

External or internal factors that provoke a response or reaction from a biological organism or psychological system.

Hypothesis

A proposed explanation for a phenomenon, serving as a starting point for further investigation.