Economic value is created when:
A)The price that the customer is willing to pay for a product exceeds the costs of the material inputs used to produce the product
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 exceeds the price they paid for it
D)The price that the customer is willing to pay for a product exceeds the cost of supplying it

Question

Quizplus · Accepted Answer

Economic value is created when the price the customer is willing to pay exceeds the cost of supplying the product. This creates a surplus that can be used to generate profits for the producer. The other options describe value extraction or value distribution, which are not the same as value creation.

Economic Value Is Created When