The producer surplus on a unit of output is the difference between the market price and the opportunity cost of producing it.

Name: The producer surplus on a unit of output is the difference between the market price and the opportunity cost of producing it.
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Question

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Producer surplus is calculated as the difference between the market price received and the opportunity cost of production, representing the benefit to producers from selling at the market price.

The Producer Surplus on a Unit of Output Is the Difference