The Amount of Value Created by a Firm Is Measured

question 138

Multiple Choice

The amount of value created by a firm is measured by:

• A)calculating the difference between the previous year's profitability and the current year's profitability.
• B)dividing the market price of its products by the price that customers are actually willing to pay.
• C)estimating the difference between its costs of production and the value that consumers perceive in its products.
• D)dividing the net profits of the firm by total invested capital.

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