Two ways to calculate economic surplus are _____ and _____.
A)consumer surplus minus producer surplus; marginal benefit plus marginal cost
B)marginal benefit minus marginal cost; consumer surplus plus producer surplus
C)marginal benefit minus price; marginal cost minus price
D)price minus marginal benefit; price minus marginal cost

Question

Quizplus · Accepted Answer

Economic surplus is the difference between total benefits (consumer and producer) and total costs (opportunity cost of resources used). The two ways to calculate economic surplus are:
1. Marginal benefit minus marginal cost: This method calculates the difference between the additional benefit received and the additional cost incurred for each unit produced or consumed. Economic surplus is the sum of all positive differences between marginal benefit and marginal cost.
2. Consumer surplus plus producer surplus: This method calculates the difference between the maximum price consumers are willing to pay and the minimum price producers are willing to accept for a product. Economic surplus is the sum of consumer surplus and producer surplus.

Two Ways to Calculate Economic Surplus Are _____ and _____

Two Ways to Calculate Economic Surplus Are _ and _