Total Surplus Is Defined as

question 341

Multiple Choice

Total surplus is defined as

• A) consumer surplus + producer surplus.
• B) consumer surplus - producer surplus.
• C) another word for profit.
• D) another word for total revenue.

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Definitions:

Marginal Cost

The hike in cost associated with the creation of an additional unit of a product or service.

MUₐ /Pₐ

Represents the ratio of the marginal utility (MU) of a good to its price (P), indicating the additional satisfaction per unit of currency spent on that good.

Product B

A general term used to refer to a second product or an alternative in a list or comparison of goods.