Consumer Surplus Represents

question 64

Multiple Choice

Consumer surplus represents

• A) the marginal value that consumers place on the last unit consumed of a good.
• B) the value that consumers place on the last unit consumed of a good.
• C) the quantity consumed in excess of the allocatively efficient amount.
• D) the total value that consumers place on the quantity consumed of some good.
• E) the difference between the value that consumers place on a good and the payment they make to buy the good, summed over the quantity consumed.

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Definitions:

Dominant Strategy

In game theory, a strategy that is best no matter what the opposition does.

Players

In an economic context, players refer to individuals or entities actively participating in a market or economic model.

Strategies

Plans or methods developed to achieve a goal or solve a problem.

Nash Equilibrium

A concept within game theory where no participant can gain by unilaterally changing their strategy if the strategies of the others remain unchanged.