Which of the Following Statements About Consumer Surplus Isincorrect

question 80

Multiple Choice

Which of the following statements about consumer surplus isincorrect?

• A)Consumer surplus is the net benefit to consumers from the exchange that occurs in a market.
• B)Consumer surplus is the gains from trade on the part of the consumer that result from a market transaction.
• C)Total consumer surplus is the area beneath the demand curve and above the market price.
• D)Consumer surplus is the difference between the minimum price the consumer is willing to pay and the market
• Price.

---

Definitions:

Frame

The structural support or skeleton that defines the shape or provides the foundation for a structure or object, such as a building or a piece of machinery.

Variable Overhead Costs

Indirect costs of production that fluctuate with the level of output, such as utilities and indirect labor.

Budgeted Overhead Cost

The estimated costs associated with running a company that are not directly tied to a specific product or service, including rent and utilities.

Machine-Hours

A measure of production time, representing the total hours that machines are in operation during a specific period.