Mark, Danny, Kristin and Ruthie all love to ski at the local ski resort on weekends. Mark is the most avid skier and places a value of $85 on his weekend skiing. Danny, Kristin and Ruthie place values of $75, $65 and $40, respectively, on their weekend skiing experience. Assume that the price of a weekend ski pass is $38. Further assume that this price reflects the actual unit cost of providing a weekend of skiing.
-According to the information provided, the amount of surplus value that accrues to Mark, Danny, Kristin and Ruthie from their weekend skiing is:
A) $265
B) $140
C) $113
D) $105

Question

Quizplus · Accepted Answer

To calculate the amount of surplus value, we need to subtract the cost (which is $38) from the value each person places on their skiing experience.

- Mark's surplus value = $85 - $38 = $47
- Danny's surplus value = $75 - $38 = $37
- Kristin's surplus value = $65 - $38 = $27
- Ruthie's surplus value = $40 - $38 = $2

To find the total surplus value, we just add up these individual surplus values:

$47 + $37 + $27 + $2 = $113

Therefore, the answer is C) $113.

Mark, Danny, Kristin and Ruthie All Love to Ski at the Local