Table 4-1 -Refer to Table 4-1.The Table Above Lists the Highest Prices

question 168

Multiple Choice

Table 4-1

-Refer to Table 4-1.The table above lists the highest prices three consumers, Tom, Dick, and Harriet, are willing to pay for a short-sleeved polo shirt.If the price of one of the shirts is $28 dollars,

• A)Tom will buy two shirts, Dick will buy one shirt and Harriet will buy no shirts.
• B)Tom will receive $12 of consumer surplus from buying one shirt.
• C)Tom and Dick receive a total of $70 of consumer surplus from buying one shirt each. Harriet will buy no shirts.
• D)Harriet will receive $25 of consumer surplus since she will buy no shirts.

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Definitions:

Group Depreciation

A method of depreciating multiple assets collectively that are similar in nature and have approximately the same expected useful lives.

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A computing device specifically designed, acquired, and used to meet the operational requirements of a business.

Double-Declining-Balance

A method of accelerated depreciation that doubles the straight-line depreciation rate, expensing more of the asset's cost closer to the beginning of its useful life.

Depreciation Expense

The allocated reduction in the value of a tangible asset over its useful life, reflecting wear and tear or obsolescence.