Figure 16-6 Watanabe Sensei Operates the Only Martial Arts School in Hartfield

question 46

Multiple Choice

Figure 16-6

Watanabe Sensei operates the only martial arts school in Hartfield. For simplicity, assume that consumers have identical demand curves and that Sensei knows what this demand curve is. Figure 16-6 shows this demand curve.
-Refer to Figure 16-6.With a two-part pricing scheme-a monopoly price for classes and a one-time membership fee-what is the amount of producer surplus Sensei will earn?

• A)an amount equal to the area A + B + C + D
• B)an amount equal to the area E + F
• C)an amount equal to the area A + C + H
• D)an amount equal to the area A + B + C + D + H + G

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Definitions:

Mean

The central value of a dataset, calculated as the sum of all the numbers divided by the count of numbers in the dataset.

Variability

The extent to which data points in a statistical distribution or data set diverge from the average or mean, indicating the dispersion in the dataset.

Mean

The arithmetic average of a set of numbers, found by dividing the sum of all numbers in the set by the count of numbers.

Qualitative Variables

Variables that describe or categorize attributes or characteristics that are not numerical but can be observed qualitatively.