The value created by companies is often defined as follows: VC = (B - P) + (P - C), where: VC is value created in a given market. B represents the consumers' maximum willingness to pay for a product in that market. P is the market price for the product. C is the minimum value the company is willing to accept for selling the product.
Any time that VC 0, it is true that: (choose the option that best suits the situation)

Question

The value created by companies is often defined as follows: VC = (B - P) + (P - C), where: VC is value created in a given market. B represents the consumers' maximum willingness to pay for a product in that market. P is the market price for the product. C is the minimum value the company is willing to accept for selling the product. 
 Any time that VC > 0, it is true that: (choose the option that best suits the situation)

Accepted Answer

companies can strike win-win deals with suppliers and consumers

Answer

leave the question unanswered

Answer

a positive producer surplus is necessarily produced

Answer

there are no prices at which consumers are willing to pay for the product that allow companies to cover the production costs

Answer

there's a negative consumer surplus in the market

Answer

prices are necessarily set according to competitive market rules

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The value created by companies is often defined as follows: VC = (B - P) + (P - ...

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