Producer surplus measures the value between the actual selling price and the:
A) price at which 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 actual selling price and the price at which sellers are willing to sell the product. It represents the additional benefit received by the seller above and beyond the minimum acceptable price they are willing to accept. Therefore, option A is the correct answer.

Producer Surplus Measures the Value Between the Actual Selling Price