Producer surplus measures the value between the actual selling price and the:
A) price sellers are willing to sell the product.
B) deadweight loss price.
C) lowest price sellers are willing to sell the product.
D) profit-maximization price.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the market price and the minimum price at which a producer is willing to sell a product. Therefore, it is measured by the difference between the actual selling price and the price sellers are willing to sell the product.

Producer Surplus Measures the Value Between the Actual Selling Price