The difference between the price producers are willing to accept for the product and the price producers actually receive for the product is known as:
A) producer surplus.
B) consumer surplus.
C) price discrimination.
D) the firm's profit.
E) market surplus.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the price producers are willing to accept for a product and the price they actually receive. It measures the benefit to producers from participating in the market.

The Difference Between the Price Producers Are Willing to Accept