Producer surplus in a perfectly competitive industry is:
A) the difference between profit at the profit-maximizing output and profit at the profit-minimizing output.
B) the difference between revenue and total cost.
C) the difference between revenue and variable cost.
D) the difference between revenue and fixed cost.
E) the same thing as revenue.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between total revenue and total variable cost, representing the benefit producers receive by selling at a market price higher than their minimum acceptable price.

Producer Surplus in a Perfectly Competitive Industry Is