If an Individual Consumer Is Willing to Pay $11 for One

question 100

Multiple Choice

If an individual consumer is willing to pay $11 for one unit of a good but is able to purchase it for $7, then his or her consumer surplus from the purchase of that unit would be:

• A)$18.
• B)$11.
• C)$7.
• D)$4.

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Definitions:

Budgeted Sales Price

Projected price at which a product is expected to be sold, used in financial planning and analysis.

Standard Costs

Pre-determined or estimated costs to perform an operation, produce a product, or offer a service, used as a basis for pricing and budgetary control.

Work In Process Inventory

Items that are partially completed in a manufacturing process but are not yet finished goods.

Standard Control Account

An account used to monitor variances between actual costs and standard (expected) costs within an accounting period.