What is the relationship between producer surplus and consumer surplus?
What will be an ideal response?
The difference between the price charged (P) for a product or service, and the cost to produce it (C), is the profit, or producer surplus. A firm captures this amount as profit per unit sold. Consumer surplus is the difference between the value a consumer attaches to a good or service (V) and what he or she pays for it (P), or (V-P).
The relationship between consumer and producer surplus is the reason trade happens: both transacting parties capture some of the overall value created.
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IKEA has achieved global recognition by offering consumers leading-edge Scandinavian furniture at affordable prices. IKEA is delivering value to consumers who are ________
A) money constrained B) time constrained C) brand constrained D) value constrained E) self-concept constrained
The most liquid of all assets is cash
a. True b. False Indicate whether the statement is true or false
The most accurate method of economic analysis is the fully quantitative _____.
Fill in the blank(s) with the appropriate word(s).
The result of interperiod income tax allocation is that
a. wide fluctuations in a company's tax liability payments are eliminated. b. tax expense shown in the income statement is equal to the deferred taxes shown on the balance sheet. c. tax liability shown in the balance sheet is equal to the deferred taxes shown on the previous year's balance sheet plus the income tax expense shown on the income statement. d. tax expense shown on the income statement is equal to income taxes payable for the current year plus or minus the change in the deferred tax asset or liability balances for the year.