What Is the Consumer Surplus for the Market from the Production

question 118

Multiple Choice

What is the consumer surplus for the market from the production of the 100th unit of a good?

• A)the marginal social cost of the 100th unit
• B)the marginal social benefit from the 100th unit
• C)the opportunity cost of producing the 100th unit
• D)the marginal social benefit from the 100th unit minus the marginal social cost of the 100th unit
• E)the marginal social benefit from the 100th unit minus the price paid for the 100th unit

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Definitions:

Manufacturing Plant

A facility used for the production of goods, equipped with machinery and labor force necessary for the manufacturing process.

Ending Finished Goods Inventory

Ending finished goods inventory is the value of all completed products that have not been sold by the end of an accounting period, ready for delivery to customers.

Raw Materials Used

The total cost of materials directly consumed in the production process during a specific period.

Gross Profit

Gross profit is the difference between sales revenue and the cost of goods sold (COGS), showing how efficiently a company produces its products.