Which of the Following Is the Reason for the Existence

question 42

Multiple Choice

Which of the following is the reason for the existence of consumer surplus?

• A)Consumers can purchase goods that they "want" in addition to what they "need."
• B)Consumers can occasionally purchase products for less than their production cost.
• C)Some consumers receive temporary discounts that result in below-market prices.
• D)Some consumers are willing to pay more than the market price.

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Definitions:

Stock Options

Financial instruments granting the holder the right to buy or sell shares of a company's stock at a predetermined price within a specified timeframe.

Stock Purchase Plans

Programs offered by companies allowing employees to purchase company stock often at a discount, as part of their benefits package.

Gainsharing

A performance-based compensation strategy where employees receive financial rewards based on improvements in the company's productivity or performance metrics.