Phil and Lasca Have Always Wanted to Take a Cruise

question 236

Multiple Choice

Phil and Lasca have always wanted to take a cruise.Although willing to pay $5,000 for a Caribbean cruise for two, they were able to purchase a cruise vacation for two for $3,500.Their total consumer surplus amounted to:

• A)$750.
• B)$5,000.
• C)$1,500.
• D)$3,500.
• E)$0.

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Definitions:

Industry Concentration

A measure of the extent to which a small number of firms dominate total production, sales, or employment within an industry.

R&D

Research and Development, a business or government activity that focuses on the development of new products or the improvement of existing products.

Firm Sales

Firm sales refer to the total amount of revenue that a company generates from the sale of its goods or services within a specific time frame.

Oligopolists

Firms in a market structure dominated by a small number of large companies, having significant control over their industry's prices and policies.