The total value created by a firm is equal to:
A)The total revenue the firm receives for the products it sells
B)The total revenue the firm receives less the cost of bought-in materials and components
C)The sum of producer surplus and consumer surplus the firm creates
D)None of the above

Question

Quizplus · Accepted Answer

The total value created by a firm is best represented by the sum of producer surplus and consumer surplus. This encompasses the benefits received by both the firm (producer surplus) and the consumers (consumer surplus), reflecting the total value created in the market by the firm's products or services.

The Total Value Created by a Firm Is Equal To