Producer surplus is equal to the price at which producers sell the goods in the market.

Name: Producer surplus is equal to the price at which producers sell the goods in the market.
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Question

Quizplus · Accepted Answer

Producer surplus is the difference between the price at which producers are willing to sell a good or service and the price they actually receive. It is the area above the supply curve and below the market price. Therefore, it is not necessarily equal to the price at which producers sell the goods in the market.

Producer Surplus Is Equal to the Price at Which Producers