Figure 7-22 -Refer to Figure 7-22.If 110 Units of the Good Are

question 117

Multiple Choice

Figure 7-22
-Refer to Figure 7-22.If 110 units of the good are bought and sold,then

• A)the marginal cost to sellers is equal to the marginal value to buyers.
• B)the marginal value to buyers is greater than the marginal cost to sellers.
• C)the marginal cost to buyers is greater than marginal value to sellers.
• D)producer surplus is greater than consumer surplus.

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Definitions:

Revenue Variance

The difference between the actual revenue earned by a company and its expected (or budgeted) revenue.

Spending Variances

Variances that arise when there is a difference between the actual amount spent on a particular item or activity and the budgeted or forecasted amount.

Customers Served

Refers to the number of clients or customers that a business has provided goods or services to during a specific period.

Flexible Budget

A financial plan that is modified based on fluctuations in volume or levels of activity.