Suppose Bart,Benjamin,and Brent Each Purchase a Particular Type of Electric

question 302

Multiple Choice

Suppose Bart,Benjamin,and Brent each purchase a particular type of electric pencil sharpener at a price of $20.Bart's willingness to pay was $22,Benjamin's willingness to pay was $25,and Brent's willingness to pay was $30.Which of the following statements is correct?

• A) Had the price of the pencil sharpener been $26 rather than $20,only Brent would have been a buyer.
• B) Brent's consumer surplus is the smallest of the three individual consumer surpluses.
• C) For the three individuals together,consumer surplus amounts to $60.
• D) The fact that all three individuals paid $20 for the same type of pencil sharpener indicates that each one placed the same value on that pencil sharpener.

---

Definitions:

All-Stock Deal

A type of business acquisition or merger where payment is made entirely in the form of the acquiring company's shares, instead of cash or a combination of cash and shares.

Shares

Shares represent ownership stakes in a company or financial asset, equally splitting any profit distributions, known as dividends, if declared.

Incremental Value

The additional or extra value generated by undertaking a new project, making an investment, or initiating any new action compared to not doing so.

Incremental Value

The additional value created by undertaking a particular action, decision, or investment, beyond the status quo.