Consider the Following Scenario to Answer the Following Questions: EJH

question 62

Multiple Choice

Consider the following scenario to answer the following questions: EJH Cinemas,a movie theater next to your university,attracts two types of customers-those who are associated with the university (students,faculty,and staff) and locals who live in the surrounding area.There are 10,000 university customers interested in purchasing movie tickets from EJH Cinemas,with a maximum willingness to pay of $7 per ticket.There are 20,000 local customers interested in purchasing tickets,with a maximum willingness to pay of $9 per ticket.The movie theater incurs a constant marginal cost of $4 per ticket.For simplicity,assume each customer purchases,at most,one ticket.
-What is the amount of consumer surplus if the price is $7 per ticket?

• A) $120,000
• B) $90,000
• C) $80,000
• D) $40,000
• E) $0

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Definitions:

Cultural Change

The transformation of the collective behaviors, values, practices, and norms of an organization or society over time.

Organization's Culture

The shared values, beliefs, norms, and practices that define a business or institution and shape its work environment and employee behavior.

Difficult Change

Refers to changes or transformations within an organization or individual's life that are hard to implement and accept.

Cultural Diversity

The existence of a variety of cultural or ethnic groups within a society, recognizing and valuing differences in tradition, history, and modes of expression.