The Difference Between the Price of a Good and the Marginal

question 56

Multiple Choice

The difference between the price of a good and the marginal cost of that good is called

• A)producer surplus
• B)profit
• C)variable cost
• D)consumer surplus

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Definitions:

Cash Payments Journal

A business ledger that documents every cash expenditure or payment conducted by a company.

Purchases Journal

A purchases journal is a special journal used in accounting to record all purchases of merchandise, supplies, or other assets on credit.

Horizontal Analysis

Financial analysis that compares an item in a current statement with the same item in prior statements.

Vertical Analysis

An analysis that compares each item in a current statement with a total amount within the same statement.