Value is created when
A)the price that the customer is willing to pay for a product exceeds the firm's direct cost of production.
B)the surplus of value is distributed between customers and producers in the industry by the forces of competition.
C)the value of a product to consumers is more than they paid for it.
D)the price that the customer is willing to pay for a product exceeds the firm's cost.

Question

Quizplus · Accepted Answer

Value is created when the price that the customer is willing to pay for a product exceeds the firm's cost. This is because the customer perceives the product as valuable and is willing to pay more for it than it costs the producer to make. This creates a surplus of value for the producer.

Value Is Created When