Suppose You Buy an IPod for $100

question 88

True/False

Suppose you buy an iPod for $100. If your consumer surplus is $30, your willingness to pay is $70.

---

Definitions:

Theoretical Maximum

The highest possible outcome or performance level under ideal conditions with no constraints or limitations.

Rated Capacity

The maximum amount of output or processing that a machine, system, or facility can consistently achieve under normal conditions.

Expected Output

The anticipated result, product, or performance that is planned to be achieved under specific conditions.

Net Present Value

A means of determining the discounted value of a series of future cash receipts.