Producer surplus is calculated as _____.
A)the area between the price line and the supply curve up to the equilibrium level of output
B)the area between the supply curve and the X-axis up to the equilibrium level of output
C)the area between the price line and the demand curve up to the equilibrium level of output
D)the area between the demand curve and the supply curve up to the equilibrium level of output

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the price that producers receive for their goods and the minimum price they would have been willing to accept for producing that quantity. It is calculated as the area between the price line and the supply curve up to the equilibrium level of output.

Producer Surplus Is Calculated as _____