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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