If Joel Buys Ten Floppy Disks, Which Are Worth a Total

question 71

Multiple Choice

If Joel buys ten floppy disks, which are worth a total of $30 to him, and he pays $1 a disk, how much consumer surplus does he derive?

• A)$24
• B)$15
• C)$20
• D)$10
• E)$2 from each floppy disk

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Definitions:

Geographical Area

A specific location, region, or territory defined by natural or artificial boundaries within which a set of activities or operations is conducted.

Density of Distribution

The measure of how extensively a product is made available to customers through the distribution channels.

Firm's Products

The goods or services offered by a business to its customers.

Intensive Distribution

A strategy employed by companies to distribute their products through as many outlets as possible to maximize product availability and consumer access.