If the Price Is Greater Than the Marginal Cost of Producing

question 10

Multiple Choice

If the price is greater than the marginal cost of producing a good,the seller has

• A) no benefit from the sale.
• B) a loss.
• C) some producer surplus from the sale.
• D) some negative consumer surplus from the sale.
• E) None of the above answers is correct.

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Definitions:

Cash Paid

The outflow of cash for various purposes, such as paying for goods, services, labor, or settling debts.

Merchandise

Products or goods that are bought, sold, or traded in any business operation.

Cash Payments

Outflows of cash from a company, covering expenses like salaries, suppliers, and other operational or investment activities.

Merchandising Company

A business that purchases finished products and sells those products to consumers.