Diana Is a Personal Trainer Whose Client Charles Pays $80

question 68

Multiple Choice

Diana is a personal trainer whose client Charles pays $80 per hour-long session. Charles values this service at $100 per hour, while the opportunity cost of Diana's time is $75 per hour. The government places a tax of $10 per hour on personal trainers. Before the tax, what is the total surplus?

• A) $25
• B) $5
• C) $0
• D) $20

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Definitions:

QR Codes

Quick Response Codes; machine-readable optical labels that contain information about the item to which they are attached, often used to store URLs or other data accessible by scanning with a mobile device.

Bar Codes

A series of lines of varying widths and spacings which represent data, scanned and read to identify a product or object.

Customization

The process of modifying products, services, or systems to meet specific customer needs or preferences.

Mobility

The ability of technology, services, or workers to be moved or accessed from different locations, enhancing flexibility and connectivity.