Each Activity in a Value Chain Adds Cost and Value

question 78

True/False

Each activity in a value chain adds cost and value to a product or service delivered to a customer.

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Definitions:

Crop Insurance

Insurance that farmers can purchase that will pay out if crop selling prices or crop revenues fall below predetermined values.

Consumer Surplus

The disparity between the total consumers intend and can afford to pay for a good or service versus what they actually spend.

Consumer Utility

The measure of satisfaction or happiness that consumers obtain from consuming goods and services.

Consumption Expenditures

Spending by households on goods and services, excluding purchases of new housing.