The producer surplus from a good is equal to the
A) price of the good minus its opportunity cost of production summed over the quantity sold.
B) maximum amount a consumer is willing to pay for the good minus the price that actually must be paid summed over the quantity sold.
C) actual price of the good minus the maximum amount a consumer is willing to pay for the good.
D) opportunity cost of producing the good minus its price summed over the quantity sold.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the price at which producers are willing to sell a good (reflecting the minimum they would accept, which is tied to the opportunity cost of production) and the price they actually receive, summed over the quantity sold.

The Producer Surplus from a Good Is Equal to the