Unit 1.1

5. A physical product that can be purchased and used by a customer or consumer.
8. Revenue minus the cost of making the product and operating the business.
9. surplus The difference between the value a consumer places on a product and the price the consumer pays.
11. Something a customer considers necessary or essential.
13. A good or service offered by a business to solve a customer’s problem or satisfy a need or want.
14. An activity or benefit provided to a customer rather than a physical product.
15. The money received by a business in exchange for goods or services.
17. Something a customer would like to have but does not necessarily need.
19. A situation in which a business may be able to solve a customer problem or meet a need or want profitably.

1. Occurs when a business offers a product that solves customers’ problems or satisfies their needs and wants.
2. The worth assigned to a good or service based on how well it meets a customer’s needs and wants.
3. The money spent by a business to make or purchase a product and operate the business.
4. Occurs when a business charges customers a price that exceeds the cost of providing the product.
6. The user of a good or service. The consumer may not be the person or organization that purchased it.
7. A structured group of people formed to achieve common goals.
10. The buyer of a good or service.
12. The match between a business’s product and the problems of its intended customers.
16. An organization that produces or purchases goods or services and then sells them. Most businesses seek profit by selling their products for more than the cost of obtaining them.
18. The amount of money a customer pays for a good or service.