Question

Please be aware that this question might've more than one correct answer.

QUESTION 2 The UQ Union is weighing up two expenditure options. It can either buy 20,000 ice-creams (each costing $1.50) to distribute to UQ students or it can construct a skate park costing $50,000 for students to freely use. There are approximately 50,000 students at UQ and each student values an ice- cream and a skate park each at $1.50 Which of the following statements are true? The total summed MB for the skate park is $125,000 The total summed MB for the skate park is $75,000 when considering all students. The total summed MB for ice-creams is $75,000 and, as the cost is $50,000, this option will result in a surplus If 20,000 ice-creams are provided and consumed, then the total summed MB will exceed the total expenditure on ice-creams

Answer 1

Here there are two possible alternatives. There are approximately “50,000 students” each values an ice-cream and a skate park each at “$1.5”, => the summed of MB is “50,000*1.5=75,000” for both alternatives.

Now, if ice-cream is provided, => total expenditure is “20,000” and the summed of MB is “75,000”, => the summed of MB exceed total expenditure, => here “B” and “D” are the correct answer.