When firms are able to sell units of a good at a price higher than the marginal cost of production, they are getting:
A) consumer surplus.
B) higher efficiency.
C) producer surplus.
D) marginal utility.

Question

Quizplus · Accepted Answer

When firms are able to sell units of a good at a price higher than the marginal cost of production, they are getting producer surplus. Producer surplus is the difference between the price a firm receives and the cost of producing the good.

When Firms Are Able to Sell Units of a Good