Table 16-3 Julie Plans to Start a Pet-Sitting Service. She Surveyed Her

question 18

Multiple Choice

Table 16-3

Julie plans to start a pet-sitting service. She surveyed her neighborhood to determine the demand for this service. Assume that each person surveyed demands only one hour of pet sitting services per period. Table 16-3 above shows a portion of her survey results.
-Refer to Table 16-3.Suppose Julie's marginal cost of providing this service is constant at $7 and she charges each customer according to his or her willingness to pay instead of a uniform price of $7.Which of the following statements is true?

• A)Julie is worse off because the demand for her services is reduced.
• B)Julie has converted the consumer surplus (from a uniform price)into economic profit.
• C)Julie's customers are better off because their consumer surplus has increased.
• D)Julie's has converted the producer surplus (from a uniform price)into consumer surplus.

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Definitions:

Local Storage

Refers to the retention of data directly on a client's device, such as a computer or smartphone, allowing for quicker access and reduced dependency on internet connectivity.

Inventory Costs

The total expenses associated with holding and managing inventory, including storage, insurance, and obsolescence.

Facility Costs

Expenses associated with the physical resources required for operations, including rent, utilities, maintenance, and equipment.

Performance Dimensions

Various metrics and criteria used to evaluate and measure the effectiveness, efficiency, and quality of operations in a business or project.