Producer surplus is indeed the area between the supply curve and the market price, represents the difference between what producers are willing to accept for a product versus what they actually receive (total revenue minus total variable costs), and can be considered the net welfare gain to producers from being able to produce and sell their product.

Solved

Producer Surplus Is

Question 29

Multiple Choice

Producer surplus is:

A) the area between the supply curve and the market price.
B) the difference between total revenue and total variable costs.
C) the net welfare gain to producers from being able to produce and sell their product.
D) All of the above.
E) None of the above.

Correct Answer: