Phil Owns a Vacation Cottage, and Is Considering the Option

Multiple Choice

Phil owns a vacation cottage, and is considering the option of bringing electricity to the cottage. If he does, he can buy electricity for $.10 per kilowatt hour. The Public Utilities Company wants to charge Phil $2,000 for the electrical hook- up, but Phil's reservation price is only $1,500. This question concerns the measurement of the benefit to Phil for the privilege of buying electricity at
$.10 per kilowatt hour. Which of the following is true?

A) EV = $1,500
B) CV = $2,000
C) CS = $2,000
D) CV = $1,500