Under the economic value creation framework,producer surplus is important in the quest for competitive advantage because:
A) This is the profit that a firm captures when producing and selling a good or service.
B) The firm will have enough inventory to meet higher future demands.
C) The value surplus can be transferred to the consumer.
D) The greater the amount of producer surplus, the higher the book value of the firm.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between price and cost and is the entrepreneur's profit. It might produce a higher book value but that would be under the accounting profitability framework.

Under the Economic Value Creation Framework,producer Surplus Is Important in the Quest