In the short run, producer surplus equals

Question

Quizplus · Accepted Answer

Producer surplus is the difference between total revenue (TR) and variable costs (VC) in the short run. This is because in the short run, producers are fixed with some resource, and variable costs may increase or decrease with the level of output, but fixed costs remain constant. Hence, option A is correct. Options B, C, D, and E are incorrect because they do not correctly define producer surplus in the short run.

In the Short Run, Producer Surplus Equals