Which Choice Below Illustrates the Tradeoff Faced by Surfboard Manufacturers

question 51

Multiple Choice

Which choice below illustrates the tradeoff faced by surfboard manufacturers after Clark foam shut down in 2005,eliminating 80% of the worlds foam blanks used to shape surfboards? The firms decide to

• A) substitute foam blanks for balsa wood blanks as used in the 1940s.
• B) advertise their new surfboard wax.
• C) offer surf classes.
• D) B and C

---

Definitions:

Marginal Utility

The change in satisfaction or benefit derived by consuming an additional unit of a good or service.

Utility

In the field of economics, the complete enjoyment or benefit derived from the consumption of a product or service.

Consumer Surplus

The discrepancy between what consumers are prepared and capable of paying for a product or service and the actual amount they end up paying.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good consumers are willing and able to purchase at different prices.