Use the following to answer questions: Table: Willingness to Pay $$\begin{array} { l c c }
\hline { \text { Maximum Willingness to Pay for Good A and Good B } } \
\hline & \text { John } & \text { Mary } \
\hline \text { Good A } & \$ 90 & \$ 35 \
\text { Good B } & \$ 30 & \$ 70 \
\hline
\end{array}$$
-(Table: Willingness to Pay) Refer to the table. Assume the firm has zero costs. If the firm were to set individual prices for each of the two goods, how much total profit does it earn from Good A?

Question

Use the following to answer questions: Table: Willingness to Pay $$\begin{array} { l c c } 
\hline { \text { Maximum Willingness to Pay for Good A and Good B } } \
\hline & \text { John } & \text { Mary } \
\hline \text { Good A } & \$ 90 & \$ 35 \
\text { Good B } & \$ 30 & \$ 70 \
\hline
\end{array}$$
-(Table: Willingness to Pay) Refer to the table. Assume the firm has zero costs. If the firm were to set individual prices for each of the two goods, how much total profit does it earn from Good A?

Quizplus · Accepted Answer

The firm should charge John $90 for Good A, as it is his maximum willingness to pay, resulting in a total profit of $90 from Good A.

Use the Following to Answer Questions: Table: Willingness to Pay