The Benefit Received by Buyers in the Market for Good

question 19

Multiple Choice

The benefit received by buyers in the market for good X is measured by:

• A)the market price
• B)the total expenditure of buyers
• C)consumer surplus
• D)the total cost to sellers of producing the good X

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Definitions:

Optimal Output Rule

The principle that profit is maximized by producing the quantity of output at which the marginal revenue of the last unit produced is equal to its marginal cost.

Marginal Revenue

The additional income earned by a company from selling one more unit of a good or service, reflecting the benefit of increased production.

Marginal Cost

The boost in expense for crafting one more unit of a product or service.

Profits

The financial gain realized when the revenue earned from economic activities exceeds the expenses, costs, and taxes associated with sustaining the activity.