Producer surplus:
A)Is the area under the supply curve above the price line.
B)Is the price a firm receives for a good minus its marginal cost of production, for every unit it sells.
C)Is the firm's marginal cost minus the price it receives for selling the good for every unit sold.
D)The area between the MB and MC curves
E)None of the above.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between what producers are willing to accept (marginal cost) and what they actually receive (price) for each unit sold.

Producer Surplus