Producer's surplus is equal to total revenue minus consumer's surplus.

Question

Quizplus · Accepted Answer

Producer's surplus represents the difference between the price at which producers are willing to supply a good or service and the actual price they receive. It is not related to consumer's surplus, which represents the difference between the price consumers are willing to pay and the actual price they pay. Therefore, producer's surplus cannot be equal to total revenue minus consumer's surplus.

Producer's Surplus Is Equal to Total Revenue Minus Consumer's Surplus