Table 12-3

-Refer to Table 12-3.Assume that the price of a weekend ski pass is $38 and that the price reflects the actual unit cost of providing a weekend of skiing.What is the value of the surplus that accrues to all four skiers from their weekend trip?
A) $105
B) $113
C) $140
D) $265

Question

Table 12-3
 
-Refer to Table 12-3.Assume that the price of a weekend ski pass is $38 and that the price reflects the actual unit cost of providing a weekend of skiing.What is the value of the surplus that accrues to all four skiers from their weekend trip?
A) $105 
B) $113 
C) $140 
D) $265

Quizplus · Accepted Answer

The total cost for all four skiers would be $152 (4 x $38). The total value they received from the trip based on their willingness to pay is $265 ($60 + $70 + $85 + $50). Therefore, the surplus would be $113 ($265 - $152).

Table 12-3 -Refer to Table 12-3.Assume That the Price of a Weekend