In an unregulated, competitive market producer surplus exists because some:
A) consumers are willing to pay more than the equilibrium price.
B) producers are willing to take more than the equilibrium price.
C) producers are willing to sell at less than the equilibrium price.
D) consumers are willing to purchase, but only at prices below equilibrium price.

Question

Quizplus · Accepted Answer

Producer surplus exists because some producers are willing to sell their goods or services at less than the equilibrium price, but they are able to sell at the equilibrium price, thus gaining additional surplus.

In an Unregulated, Competitive Market Producer Surplus Exists Because Some