Total surplus in a market is:
A)the total costs to sellers of providing the goods less the total value to buyers of the goods
B)always less than consumer surplus plus producer surplus
C)the total value to buyers of the goods less the costs to sellers of providing those goods
D)always greater than consumer surplus plus producer surplus

Question

Quizplus · Accepted Answer

Total surplus in a market is the difference between the total value to buyers and the total cost to sellers. Therefore, choice C is the correct answer. Choice A is incorrect because it subtracts the total value to buyers, which is incorrect. Choice B is incorrect because it is not always true that total surplus is less than the sum of consumer surplus and producer surplus. Choice D is incorrect because it is not always true that total surplus is greater than the sum of consumer surplus and producer surplus.

Total Surplus in a Market Is