Is the producer surplus same as the profit?
A) Yes, they are the same, because the producer surplus is the sum of profits from each unit sold.
B) Yes, they are the same, because the profit is the revenue minus the sum of marginal costs of each unit sold.
C) No, they are different, because the profit is always at least the producer surplus.
D) No, they are different, because the producer surplus does not take into account the fixed cost.
Correct Answer:
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