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​If You Are Willing to Sell Your Car Business for $500,000

Question 8

Multiple Choice

​If you are willing to sell your car business for $500,000 and someone offers you $420,000 for it,this transaction will generate:


A) ​There is no surplus created
B) $80,000 worth of seller surplus and unknown amount of buyer surplus
C) $40,000 worth of buyer surplus and $40,000 of seller surplus
D) ​$80,000 worth of buyer surplus and unknown amount of seller surplus

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