The Total Surplus Generated in a Market Is

question 78

Essay

The total surplus generated in a market is:
A.the excess supply due to a price above the equilibrium price.
B.the surplus that exists when a good is not scarce, defined as the total amount (if any) by which quantity supplied exceeds quantity demanded at a zero price.
C.the net benefit to consumers, defined as the excess of consumer surplus over producer surplus.
D.the sum of consumer surplus and producer surplus.

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Definitions:

Marginal Cost

The outlay required to produce another unit of a product or service.

Marginal Benefit

The additional benefit to a consumer from consuming one more unit of a good or service.

R&D Expenditures

Costs associated with research and development activities undertaken by a company to innovate or improve products or processes.

Marginal Cost

The incremental cost involved in manufacturing an additional unit of a good or service.