A recent accounting graduate from a major business school is searching for a place to begin his career as an accountant. This individual is best considered as

The value added of a producer is the

A) total amount for which all its products sell minus its change in inventories. B) value of its total sales once externalities are accounted for. C) value of its output minus the value of the inputs it purchases from other producers. D) quality-adjusted amount of its total sales less any commissions paid.

Product differentiation allows a firm to charge a higher price because the residual demand curve facing the firm

A) is more elastic than the residual demand curve without product differentiation. B) is less elastic than the residual demand curve without product differentiation. C) is horizontal. D) shifts to the left.