Describe the Difference Between Operating Expenses and Losses from the Sale

question 105

Essay

Describe the difference between operating expenses and losses from the sale of plant and equipment while providing examples of each.

---

Definitions:

Consumer Surplus

The disparity between what consumers are prepared and capable of paying for a product or service versus what they actually end up paying.

Total Expenditure

The sum amount of money spent by consumers to purchase a certain quantity of goods or services.

Point Price Elasticity

A measure of how responsive the quantity demanded of a good is to a change in its price at a specific point on the demand curve.

Artichokes

A variety of thistle cultivated for its edible flower buds.