If the Consumer Is Willing to Pay a Price Higher

question 202

True/False

If the consumer is willing to pay a price higher than the actual price of a product, then the consumer
will not buy the product because the consumer surplus will be negative.

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Definitions:

Direct Labour

Work specifically conducted by employees directly involved in the manufacturing process of a product.

Manufacturing Overhead

All manufacturing costs excluding direct labor and direct materials, such as utilities and rent for production facilities.

Cost of Goods Manufactured

This refers to the total production cost incurred by a company to manufacture products in a specific period, including materials, labor, and overhead costs.