Producer surplus is the:
A) amount paid to sellers above and beyond the value received by consumers.
B) amount paid to sellers above and beyond the required minimum.
C) amount paid to sellers.
D) cost of production.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the price that producers receive for a good or service and the minimum price at which they would still be willing to sell it. This means that it is the amount paid to sellers above and beyond the required minimum, which is represented by the cost of production. Therefore, the correct answer is B.

Producer Surplus Is The