Where There Is an Implied Promise to Pay for What

question 34

Multiple Choice

Where there is an implied promise to pay for what services rendered are reasonably worth, it is referred to as

• A) implied price.
• B) quantum meruit.
• C) implied value.
• D) quasi price.
• E) direct cost.

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Definitions:

Producer Surplus

The variance between the acceptable selling price for producers of a good or service and the real earnings they secure.

New Producers

Fresh entrants in a market that introduce additional capacity, innovation, or competition.

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity supplied for a given period.

Producer Surplus

The difference between the amount a producer is willing to accept for a good or service and the actual amount received from its sale.