Producer surplus is
A)the value producers place on a good minus the price of the good.
B)the price of the good minus the value producers place on it.
C)zero if price equals marginal cost.
D)equal to marginal benefit minus marginal cost.
E)equal to consumer surplus.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the price at which producers are willing to sell a good and the price they actually receive. If the price equals the marginal cost, the producer is indifferent between selling and not selling, implying no surplus.

Producer Surplus Is