At the Output Where the Combined Amounts of Consumer and Producer

question 1

Multiple Choice

At the output where the combined amounts of consumer and producer surplus are largest,

• A)the areas of consumer and producer surplus necessarily are equal.
• B)the maximum willingness to pay for the last unit of output equals the minimum acceptable price of that unit of output.
• C)consumer surplus exceeds producer surplus by the greatest amount.
• D)marginal benefit exceeds marginal cost by the greatest amount.

---

Definitions:

Service To Customer

Activities and benefits provided by a business to its customers, aimed at satisfying their needs and expectations.

Accounting Equation

The foundational principle of accounting expressing that assets equal the sum of liabilities and shareholder's equity.

Purchased Equipment

Fixed assets acquired by a company for use in the production or supply of goods and services, not for resale.

Accounting Equation

The fundamental equation of accounting, represented as Assets = Liabilities + Equity, serving as the foundation for double-entry bookkeeping.