Producer surplus definitely exists when the
A) marginal benefit exceeds the marginal cost.
B) marginal cost exceeds the price.
C) price exceeds marginal benefit.
D) marginal benefit exceeds the price.
E) price exceeds marginal cost.

Question

Quizplus · Accepted Answer

Producer surplus exists when the price at which producers are willing to sell a good or service is less than the price they actually receive, meaning the price exceeds the marginal cost of production. This difference represents the surplus or extra benefit producers receive.

Producer Surplus Definitely Exists When the