Recall the Application About Japanese and American Consumers' Willingness to Pay

question 76

Multiple Choice

Recall the Application about Japanese and American consumers' willingness to pay for Internet service to answer the following question(s) . In the United States, the average willingness to pay for Internet service is $85 per month, and the average monthly price of Internet service is $40 per month.
-According to the Application,the average consumer surplus in Japan from Internet service is about ________ percent of the price.

• A) 11
• B) 40
• C) 85
• D) 162

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Definitions:

IFRS

International Financial Reporting Standards; a set of accounting standards developed by the International Accounting Standards Board that is becoming the global standard for the preparation of public company financial statements.

Cost Recovery Method

An accounting technique where revenue is recognized only after the costs of the sold goods or services are recovered, deferring profit recognition.

IFRS

A collection of accounting guidelines formulated by the International Accounting Standards Board (IASB) to assist in the creation of financial statements for public companies worldwide, known as International Financial Reporting Standards.

Installment Sales

A sales method that allows customers to pay for goods or services over a period of time in installments.