Which of the following is NOT correct?
A)consumer surplus = value to buyers - Amount paid by buyers
B)producer surplus = amount received by sellers - Cost of sellers
C)total surplus = value to buyers - Amount paid by buyers + Amount received by sellers - Costs of sellers
D)total surplus = Value to sellers - Costs of sellers

Question

Quizplus · Accepted Answer

Total surplus is the sum of consumer surplus and producer surplus, so it cannot be equal to value to sellers minus costs of sellers. Choice D only accounts for producer surplus and does not include consumer surplus.

Which of the Following Is NOT Correct