Producer surplus is the difference between the
A) willingness to pay for the good and the marginal cost of producing the good summed over the quantity sold.
B) price and the willingness to pay for the good.
C) marginal benefit of consuming the good and the marginal cost of producing the good summed over the quantity sold.
D) price and the marginal cost of producing the good summed over the quantity sold.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the price for which producers are able to sell a product and the marginal cost of producing that product, summed over the quantity sold. This represents the additional benefit producers receive from selling the product at a higher price than the minimum they would be willing to accept, which is typically the marginal cost of production.

Producer Surplus Is the Difference Between the