Producer surplus is the difference between the actual price a producer receives (or the market price) for a good and the minimum amount they would be willing to accept for the good, which typically reflects the cost of production.

Solved

Producer Surplus Is

Question 45

Multiple Choice

Producer surplus is

A) the difference between how much a consumer would be willing to pay to consume a good and the amount actually paid to purchase the good.
B) the difference between the actual price of a good and the amount a producer is willing to accept given its costs.
C) equal to accounting profit.
D) equal to economic profit.

Correct Answer: