The Difference Between the Amount a Seller Receives for a Good

question 131

Multiple Choice

The difference between the amount a seller receives for a good and the lowest amount for which he would sell the good is called

• A) producers' surplus.
• B) windfall gain.
• C) consumers' surplus.
• D) excess profit.

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Definitions:

FIFO

An acronym for "First In, First Out," a method used in inventory management and accounting where the oldest inventory items are recorded as sold first.

Unit Costs

The expense associated with manufacturing, storing, or acquiring a single unit of a good or service.

Process Cost System

An accounting method used to apply costs to similar products that are mass-produced in a continuous fashion.

Natural Gas Refinery

A facility that processes natural gas to remove impurities and possibly extract valuable hydrocarbons and fluids.