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)greater the more elastic the supply of the good.
E)none of the above.

Question

Quizplus · Accepted Answer

Producer surplus is zero if price equals marginal cost because producers are not making any additional profit beyond covering their costs.

Producer Surplus Is