The Primary Advantage of Replacement Value Is

question 19

Multiple Choice

The primary advantage of replacement value is:

• A)accuracy.
• B)high cost.
• C)low taxes.
• D)low cost.

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Definitions:

Consumer Surplus

The gap between what consumers are ready to pay for a product or service and the actual amount they spend.

Marginal Utility

The additional satisfaction or utility that a person receives from consuming one more unit of a good or service.

Total Utility

The entire pleasure derived from using a certain aggregate quantity of a good or service.

Consumer Surplus

The difference between the maximum price consumers are willing to pay for a good or service and the actual price they do pay.