Economic Value Is Created When

question 18

Multiple Choice

Economic value is created when:

• A)The price that the customer is willing to pay for a product exceeds the costs of the material inputs used to produce the product
• B)The surplus of value is distributed between customers and producers in the industry by the forces of competition
• C)The value of a product to consumers exceeds the price they paid for it
• D)The price that the customer is willing to pay for a product exceeds the cost of supplying it

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Definitions:

Total Profit

The total amount of money a company earns after subtracting the costs associated with producing and selling its products or services.

Early Finish Time

The earliest possible point in time when a particular task, project, or activity can be completed.

Latest Finish Time

In project management, the latest possible point in time by which an activity must be completed without delaying the project.