Which of the following is NOT an accurate expression of the economic value created per unit of a product sold?
A) The sum of consumer surplus and producer surplus
B) The difference between consumer's reservation price and firm's cost
C) The sum of consumer surplus and firm profit
D) The difference between the price charged and the firm's cost

Question

Quizplus · Accepted Answer

Economic value creation equals consumer surplus plus firm profit, or the sum of consumer and producer surplus. It can also be expressed as the difference between the consumers' maximum willingness to pay (reservation price) and the firm's cost (V - C). However, the difference between the price charged and the firm's cost is simply producer surplus.

Which of the Following Is NOT an Accurate Expression of the Economic