Consumer surplus: A. is the difference between the current market price and the cost of production for the firm. B. is the difference between the maximum amount a person is willing to pay for a good and its current market price. C. represents the maximum amount a person is willing to pay for a particular good. D. is the difference between the true value of a good and the amount a person is willing to pay for the good.

Exercise 2-12 cost behavior; high-low method [lo2-3, lo2-4] speedy parcel service operates a fleet of delivery trucks in a large metropolitan area. a careful study by the company’s cost analyst has determined that if a truck is driven 120,000 miles during a year, the average operating cost is 11.6 cents per mile. if a truck is driven only 80,000 miles during a year, the average operating cost increases to 13.6 cents per mile. required: 1.& 2. using the high-low method, estimate the variable and fixed cost elements of the annual cost of truck operation. (round the "variable cost per mile" to 3 decimal places.)