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Figure 16-2 Watanabe Sensei Operates the Only Martial Arts

Question 96

Multiple Choice

Figure 16-2 Figure 16-2   Watanabe Sensei operates the only martial arts school in Hartfield.For simplicity,assume that consumers have identical demand curves and that Sensei knows what this demand curve is.Figure 16-2 shows this demand curve. -Refer to Figure 16-2.With a two-part pricing scheme - a monopoly price for classes and a one-time membership fee - what is the amount of producer surplus Sensei will earn? A) an amount equal to the area A + B + C + D B) an amount equal to the area E + F C) an amount equal to the area A + C + H D) an amount equal to the area A + B + C + D + H + G Watanabe Sensei operates the only martial arts school in Hartfield.For simplicity,assume that consumers have identical demand curves and that Sensei knows what this demand curve is.Figure 16-2 shows this demand curve.
-Refer to Figure 16-2.With a two-part pricing scheme - a monopoly price for classes and a one-time membership fee - what is the amount of producer surplus Sensei will earn?


A) an amount equal to the area A + B + C + D
B) an amount equal to the area E + F
C) an amount equal to the area A + C + H
D) an amount equal to the area A + B + C + D + H + G

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