Consumer Surplus Is Equal to

question 167

Multiple Choice

Consumer surplus is equal to

• A) marginal benefit minus price summed over the quantity consumed.
• B) price minus marginal benefit summed over the quantity consumed.
• C) marginal benefit summed over the quantity consumed.
• D) price multiplied by the quantity consumed.
• E) marginal benefit plus price summed over the quantity consumed.

---

Definitions:

Present Value

The current value of a future amount of money or stream of cash flows given a specified rate of return.

Cash Inflows

The total amount of money entering a company, typically from operations, financing, and investing activities.

Rate of Return

A measure of the profitability of an investment, indicating the percentage of invested money gained or lost relative to its initial cost.

Capital Budgeting Technique

Methods used to evaluate and select long-term investments based on potential for profit and alignment with strategic goals, such as NPV or IRR.