Consumer Surplus Is

question 34

Multiple Choice

Consumer surplus is

• A)positive in the case of a monopolist practising perfect price discrimination.
• B)equal to price minus marginal cost.
• C)less in the case of a single-price monopoly than in the case of a perfectly competitive industry.
• D)zero for a single-price monopolist.
• E)greater in a single-price monopoly than in a perfectly competitive industry.

Understand how changes in activity measures affect costs in an ABC system.

Understand the fundamentals of activity-based costing (ABC) and its application in different business scenarios.

Apply activity-based costing to calculate the break-even price for products or services.

Identify the components and calculations involved in time-driven activity-based costing.

---

Definitions:

Total Costs

The sum of all expenses incurred in the production of goods or services, including fixed and variable costs.

Total Revenue

The overall income generated by a firm from its sales activities before any costs or expenses are subtracted.

Normal Return

The minimum profit necessary for a company to remain in business, often equated to covering opportunity costs.

Total Fixed Costs

The sum of all costs required to produce any output, assuming they remain constant regardless of the level of production.