Margin Can Be Defined as

question 6

Multiple Choice

Margin can be defined as

• A) the difference between the total cost of raw materials and the list price of a product.
• B) the difference of the price a customer is willing to pay and how much the company actually collects.
• C) the difference of the price a customer is willing to pay and the price a seller is willing to sell at.
• D) the difference between the selling price and the list price.
• E) the difference of the price a customer is willing to pay and the cost of moving the good or service through its value chain.

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Definitions:

Limited Resources

The finite availability of inputs or resources (labor, capital, land) that can be used for the production of goods and services.

Unlimited Wants

The economic concept that human desires and needs are constant and infinite, whereas the resources to fulfill them are limited.

Best Use

Optimal allocation or application of resources to maximize efficiency or value.

Positive Statement

An objective statement based on factual information or data that can be tested or rejected through observation.