What is meant by producer surplus?
A)It is the total quantity of a good produced by the seller.
B)It is the difference between the producer's marginal cost and the price.
C)It is the difference between a producer's minimum selling price and the actual price.
D)It is a measure of the total benefit to producers resulting from the purchase of an input.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between what producers are willing to accept for a good or service versus what they actually receive. It's essentially the extra benefit producers get from selling at a market price that is higher than the minimum they would be willing to accept.

What Is Meant by Producer Surplus