Graphically, the Area That Represents the Difference Between the Maximum

question 292

Multiple Choice

Graphically, the area that represents the difference between the maximum price consumers were willing to pay for a good and the market price is called

• A) consumer surplus.
• B) producer surplus.
• C) marginal cost.
• D) triangular arbitrage.

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Definitions:

Cost Of Goods Sold

The total of all costs used to create a product or service, which has been sold.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including the cost of materials and labor but not distribution or sales costs.

Budgeted Cost

An estimated cost anticipated for a specified period of time or activity.

Raw Materials Purchases

The total cost or volume of raw materials bought by a company for use in production over a specific period of time.