Economics 9708 · AS & A Level · Economic methodology

Economic methodology — practice question

Which row contains two correct statements?

  • Aconsumer surplus: the value that consumers gain from consuming a good over and above the value that would have been gained from consuming the next best alternative; producer surplus: the difference between the actual revenue received by firms for a good and the profit maximising revenue
  • Bconsumer surplus: the value that consumers gain from consuming a good over and above the price paid; producer surplus: the difference between the price received by firms for a good or service and the price at which they would have been prepared to supply that good
  • Cconsumer surplus: the value that consumers gain from consuming a good over and above the price paid; producer surplus: the difference between the actual revenue received by firms for a good and the profit maximising revenue
  • Dconsumer surplus: the value that consumers gain from consuming a good over and above the value that would have been gained from consuming the next best alternative; producer surplus: the difference between the price received by firms for a good and the price at which they would have been prepared to supply that good

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