Why is value created when someone buys something for themselves?
A. Because the cost to produce the good is greater than the price of the good.
B. Because the price of the good is greater than the value of the good to the buyer.
C. Because the buyer values the good more than it costs the seller to produce.
D. Because the buyer values the good as much as it costs the seller to produce.
Answer: C. Because the buyer values the good more than it costs the seller to produce.
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Internal economies in the U.S. during its period of industrialization involved the
(a) production of goods in factories. (b) production in small, isolated towns spread throughout the U.S. (c) production of goods in factories grouped together in the same geographical region. (d) production of goods in isolated factories spread throughout the U.S.
Producer surplus equals total revenue minus the sum of all marginal cost
What will be an ideal response?