Consumer Surplus Is Important to Firms Because

question 38

Multiple Choice

Consumer surplus is important to firms because:

• A) it represents value consumers receive that they do not pay for.
• B) market prices must incorporate consumer surplus.
• C) they must pay taxes based on the level of consumer surplus.
• D) if firms can capture it, they can increase their profitability.
• E) a and d

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Definitions:

Chaparral

A biome characterized by dense, evergreen shrubbery found in areas with hot, dry summers and mild, wet winters, primarily in the southwestern United States.

Bison

Large, grass-eating mammals found primarily in North America, known for their large size, shaggy hair, and horns.

Temperate Grassland

A biome characterized by wide-open spaces with grasses as the dominant vegetation, experiencing moderate rainfall and distinct seasonal temperature variations.

Sagebrush

A type of shrub native to North America, known for its aromatic leaves and adapted to dry, arid conditions, commonly found in desert and steppe environments.