Which of the Following Is the Definition of Consumer Surplus

question 123

Multiple Choice

Which of the following is the definition of consumer surplus?

• A)the difference between the value that consumers place on a good and the payment they make to buy the good,summed over the quantity consumed
• B)the total value that consumers place on the quantity consumed of some good
• C)the quantity consumed in excess of the allocatively efficient amount
• D)the value that consumers place on the last unit consumed of a good
• E)the marginal value that consumers place on the last unit consumed of a good

---

Definitions:

Economies of Scale

Economies of scale occur when increasing the production scale leads to a decrease in the long-term average costs, often due to more efficient use of inputs.

Exclusive Franchise

A legal agreement granting one party the sole right to sell or distribute a company's products or services in a particular market area.

Conglomerate Merger

involves the combination of firms that operate in unrelated business areas, aiming for diversification and reduced business risk.

Distinct Industries

Different sectors of the economy that produce different types of goods or services, characterized by unique products, markets, and production processes.