If all sellers in the market have an identical willingness to sell, then producer surplus will be zero.

Question

Quizplus · Accepted Answer

If all sellers have the same willingness to sell, then they will all sell their goods at the same price. This means that the market price will be equal to the marginal cost for all sellers, resulting in zero producer surplus, as the price received by the seller will just cover their cost of production.

If All Sellers in the Market Have an Identical Willingness