Two Economists from Northwestern University Estimated the Benefit Households Received

question 91

Multiple Choice

Two economists from Northwestern University estimated the benefit households received from subscribing to broadband Internet service.The economists found that

• A)the consumer surplus from dial-up Internet service exceeded the consumer surplus from broadband Internet service.
• B)the average consumer of broadband Internet service received a marginal benefit equal to $36.
• C)most consumers of broadband Internet service were not willing to pay more than $36 per month.
• D)one month's benefit to consumers who subscribe to broadband Internet service is about $890 million.

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Definitions:

Multiple-Step Income Statement

An intricate financial report that distinguishes between operating revenues and expenses and those that are non-operating in order to determine the net income.

Single-Step Income Statement

A simplified income statement that calculates net income by subtracting total expenses from total revenues in one step.

Net Operating Income

Net operating income is the total profit of a company after operating expenses are subtracted from gross revenue but before deducting taxes and interest.

Condensed Income Statements

A simplified financial statement that presents a company's net income and revenue summary over a specific period, omitting detailed line items.