The producer surplus on a unit of a good is the
A) number of dollars' worth of other goods and services forgone to produce this unit of the good.
B) difference between the marginal social benefit and the marginal social cost.
C) difference between the total cost of the good and the marginal cost.
D) difference between the price of the good and the marginal cost of producing the good.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the price at which a producer sells a good and the minimum price at which they would have been willing to sell (essentially the marginal cost of production).

The Producer Surplus on a Unit of a Good Is