Consumer Surplus

question 46

Multiple Choice

Consumer surplus

• A) is the total value that a consumer receives from the purchase of a particular good.
• B) is the sum of the marginal values to the consumer.
• C) is a measure of the gains that a consumer forgoes by buying this product rather than another.
• D) is the difference between what the consumer is willing to pay for all the units consumed and what he or she actually paid.
• E) is the consumption of a commodity above and beyond the amount required by the consumer.

---

Definitions:

Supervisory Direction

Guidance and oversight provided by supervisors to ensure tasks and activities are completed according to organizational standards.

Assembly Plant

A manufacturing facility where various components of a product are put together to form a final product.

Contingency Approach

A management theory that suggests the best way to manage an organization depends on the specific circumstances of the situation.

Organizational Design

The process of structuring an organization's roles, responsibilities, and resources to achieve its goals efficiently.