The revenue that producers receive over and above the minimum necessary for production is called
A) deadweight loss.
B) deadweight gain.
C) producer surplus.
D) consumer surplus.

Question

Quizplus · Accepted Answer

The revenue that producers receive over and above the minimum necessary for production is known as producer surplus. In the given figure, the area above the supply curve and below the equilibrium price represents the producer surplus. Therefore, the correct choice is C. Deadweight loss refers to the reduction in economic welfare due to market inefficiencies, and deadweight gain is not a commonly used term in economics.

The Revenue That Producers Receive Over and Above the Minimum