Consumer Surplus Is the

question 1

Multiple Choice

Consumer surplus is the

• A)amount of a good consumers get without paying anything.
• B)amount a consumer pays minus the amount the consumer is willing to pay.
• C)amount a consumer is willing to pay minus the amount the consumer actually pays.
• D)value of a good to a consumer.

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Definitions:

MC

Marginal Cost, the change in total production cost that comes from making or producing one additional unit.

ATC

Average Total Cost, which is the total cost divided by the number of goods produced, representing the per-unit production cost.

AVC

Average Variable Cost; the total variable cost divided by the quantity of output produced, indicative of variable costs per unit of output.

Marginal Cost Curve

This curve illustrates the change in the total cost that arises when the quantity produced is incremented by one unit. It is the graphical representation of the marginal cost of production as the amount produced changes.