Consumer Surplus Is

question 32

Multiple Choice

Consumer surplus is

• A)the same as Karl Marx's notion of surplus value.
• B)the same as total utility.
• C)the sum of the extra value placed on each unit of a commodity above the market price paid for each.
• D)the total value that consumers place on their purchases.
• E)the marginal value that consumers place on their purchases.

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Definitions:

Accounts Receivable Turnover

A financial metric indicating how many times a business collects its average accounts receivable during a period, reflecting credit sales efficiency.

Average Collection Period

The average number of days it takes for a company to receive payment from its customers for invoices issued.

Inventory Turnover

A measure of how often a company sells and replaces its stock of goods within a certain period.

Average Sale Period

The average amount of time it takes for a company to convert its inventory into sales.