The amount of value a firm creates is measured by: A. the difference

QUESTION

The amount of value a firm creates is measured by:

A. the difference between the previous year’s profitability and the current year’s profitability.

B. dividing the market price of its products by the price that customers are actually willing to pay.

C. the difference between its costs of production and the value that consumers perceive in its products.

D. dividing the net profits of the firm by total invested capital.

E. the sum of the profitability of the last two fiscal years.

ANSWER

C