Consider the Following Scenario to Answer the Following Questions: EJH

question 21

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 $9 per ticket?

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

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Definitions:

Service Providers

Companies or individuals that offer services to others in exchange for compensation, often in sectors like telecommunications, health, or education.

Good Job

An expression of approval or praise for someone's accomplishment or performance.

Service Quality

The degree to which a service meets the customer's needs and expectations.

Landscaping

The process of making a yard or other piece of land more attractive by altering the existing design, adding ornamental features, and planting trees and shrubs.