Which Equation Calculates Total Surplus

question 99

Multiple Choice

Which equation calculates total surplus

• A)Total surplus = Value to buyers - Amount received by sellers + Amount paid by buyers - Costs of sellers
• B)Total surplus = Amount received by sellers - Value to buyers + Amount paid by buyers - Cost of sellers
• C)Total surplus = Value to buyers - Amount paid by buyers + Amount received by sellers - Costs of sellers
• D)Total surplus = Amount received by sellers - Costs of sellers + Amount paid by buyers - Value to buyers

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Definitions:

Percentage

A mathematical concept that represents a fraction of 100, commonly used to quantify the relative size of one quantity as a fraction of another.

Strict Residual Dividend

A dividend policy under which dividends are paid from the residual or leftover equity only after all project capital needs are met, prioritizing investment over dividends.

Stable Pattern

A stable pattern indicates consistent and predictable behavior or trends over a period of time.

Dividends Over Time

The cumulative dividends paid out by a corporation to its shareholders over a period, reflecting the company's profitability and policy on profit distribution.