Table 93 Julie Plans to Start a Pet-Sitting Service

question 195

Multiple Choice

Table 9.3 Julie plans to start a pet-sitting service.She surveyed her neighbourhood to determine the demand for this service.Assume that each person surveyed demands only one hour of pet sitting services per period.Table 9.3 above shows a portion of her survey results.
-Refer to Table 9.3.Suppose Julie's marginal cost of providing this service is constant at $7 and she charges $7.What is the value of the consumer surplus enjoyed by her customers?

• A)$39
• B)$28
• C)$11
• D)$0

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Definitions:

Balance Sheet

A financial statement that presents a company's assets, liabilities, and shareholders' equity at a specific point in time.

Inventory

The cumulative quantity of products and materials in a company's possession intended for either production or sale.

Product Costs

Costs directly related to the manufacturing of a product, including raw materials, labor, and overhead expenses.

Materials and Labor

Materials and labor represent the primary costs involved in the production of goods, including raw materials used and wages paid to workers.