Suppose that Justin Timberlake sells 10,000 tickets to a concerts at $480 each. If the equilibrium price is $600 per ticket for a fixed supply of 10,000 tickets, what is the value of the additional economic rent that Timberlake could earn if he charged the market clearing price?
A) $12.00
B) $1.2 million
C) $3 million
D) $1.8 million
Correct Answer:
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