The total producer surplus in the Wisconsin milk market is the:

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the price that a producer receives for a good and the minimum price that they are willing to accept for that good. The total producer surplus in a market is the sum of the individual producer surpluses, which is the case in the Wisconsin milk market. Therefore, choice (A) is the correct answer. Choice (B) is incorrect because it describes the total revenue and not the producer surplus. Choice (C) is incorrect because it describes only the revenue and not the surplus. Choice (D) is incorrect because it describes only the cost and not the surplus.

The Total Producer Surplus in the Wisconsin Milk Market Is