Table 4-2 -Refer to Table 4-2.The Table Above Lists the Highest Prices

question 67

Multiple Choice

Table 4-2

-Refer to Table 4-2.The table above lists the highest prices five consumers are willing to pay for a theater ticket.If the price of one ticket falls from $25 to $10,

• A)only three tickets will be sold.
• B)consumer surplus decreases from $24 to $12.
• C)consumer surplus increases from $0 to $31.
• D)everyone will buy a ticket.

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Definitions:

Total Fixed Cost

The total of all costs that do not change with the level of production or sales activities within a company.

Purely Competitive Market

A market structure characterized by many buyers and sellers, no barriers to entry, and a homogeneous product, leading to the firms being price takers.

Total Cost

The complete amount of costs incurred by a business in the production of goods or services, including both fixed and variable costs.

Marginal Cost

The financial outlay required to produce an additional unit of a product or service.