Consumer Surplus Exists When

question 308

Multiple Choice

Consumer surplus exists when

• A) it costs less to produce goods than buyers must pay for them.
• B) consumers value the good more highly than what they must pay to buy it.
• C) taxes on goods are less than the appropriate amount.
• D) the marginal benefit of the good is always equal to or less than the price of the good.
• E) the price of the good is greater than the marginal cost of producing a unit of the good.

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Definitions:

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