The Net Gain to Society from the Operation of a Competitive

question 98

Multiple Choice

The net gain to society from the operation of a competitive market in equilibrium is

• A)consumer surplus only.
• B)producer surplus only.
• C)the sum of consumer surplus and producer surplus.
• D)the profits of the producers.

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Definitions:

Noncumulative Preferred Stock

This type of preferred stock does not entitle its holders to claims on dividends missed in the past if they were not declared in those years.

Common Stock

A form of corporate equity ownership, a type of security representing an ownership share in a corporation.

Dividends

A portion of a company's earnings distributed to shareholders as a reward for their investment.

Par Common Stock

The face value of common shares issued by a company, which is noted on the share certificate.