The Difference Between the Lowest Price a Firm Would Have

question 32

Multiple Choice

The difference between the lowest price a firm would have been willing to accept and the price it actually receives from the sale of a product is called

• A)producer surplus.
• B)profit.
• C)marginal revenue.
• D)price differential.

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Definitions:

CIF

Cost, Insurance, and Freight, a trade term requiring the seller to arrange for the carriage of goods by sea to a port of destination, and provide the buyer with the documents necessary to obtain the goods.

Voidable Title

A legal status of property ownership that can be declared invalid by one of the parties involved, due to factors such as fraud or coercion at the time of acquisition.

Good Faith Purchaser

An individual who buys something without knowledge of a prior claim or lien against the property, therefore acquiring clean title.

Risk Of Loss

The potential for an asset to be lost, damaged, or diminished in value, and the question of who bears this risk under the terms of a contract.