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

question 61

Multiple Choice

Figure 16-6
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 this pricing scheme-a competitive price for the classes and a one-time membership fee-what amount of producer surplus will Sensei earn? A) the area A + B + C + D + E. B) the area E + F. C) the area H + G + F. D) the area A + B + C + D + E + F + G + H
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 this pricing scheme-a competitive price for the classes and a one-time membership fee-what amount of producer surplus will Sensei earn?


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