The difference between what a consumer is willing to pay for a unit of a good and what must be paid when actually buying it is called:

A) producer surplus.
B) consumer surplus.
C) cost benefit analysis.
D) net utility.

Question

emanuel garcia · Accepted Answer

Final Answer : B, Explanation :  The difference between what a consumer is willing to pay for a unit of a good and what they actually have to pay is the definition of consumer surplus. Producer surplus refers to the difference between the cost of production and the price at which a seller is willing to sell the good. Cost benefit analysis is a method of evaluating the costs and benefits of a decision or project. Net utility refers to the total satisfaction or benefit an individual receives from consuming a good or service.

The difference between what a consumer is willing to pay for a unit of a good and what must be paid when actually buying it is called:

A) producer surplus.
B) consumer surplus.
C) cost benefit analysis.
D) net utility.

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Learning Objectives

Learning Objectives

Related questions

The difference between what a consumer is willing to pay for a unit of a good and what must be paid when actually buying it is called:A) producer surplus.B) consumer surplus.C) cost benefit analysis.D) net utility.

Definitions

Learning Objectives

Learning Objectives

Related questions

The difference between what a consumer is willing to pay for a unit of a good and what must be paid when actually buying it is called:

A) producer surplus.
B) consumer surplus.
C) cost benefit analysis.
D) net utility.