Which of the Following Statements Is True of Products with High

question 105

Multiple Choice

Which of the following statements is true of products with high value-to-weight ratios?

• A) Transportation costs usually account for a large percentage of their total costs.
• B) They are relatively inexpensive and weigh a lot.
• C) They are usually produced in multiple locations close to major markets.
• D) Their transportation account for a very small percentage of the total costs.

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Definitions:

Consumer Surplus

The divergence between anticipated consumer expenditure on a good or service and the actual expenditure.

Surplus II

An excess of production or supply over demand, leading to potential wastage or decrease in prices.

Total Surplus

The total benefits society gains, encompassed by the addition of consumer surplus and producer surplus within a market.

Consumer Surplus

The variation between the sum consumers are willing to allocate for a good or service and the sum they actually allocate.