The difference between current market price and full costs of production for the firm is known as
A) consumer surplus.
B) producer surplus.
C) market surplus.
D) nonprice surplus.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the current market price and the full costs of production for the firm. It represents the additional benefit the producer receives for selling a product at a higher price than the minimum they would be willing to accept.

The Difference Between Current Market Price and Full Costs of Production