For any transaction, the sum of consumer surplus and producer surplus is cooperative surplus.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the price a consumer is willing to pay for a good or service and the price they actually pay. Producer surplus is the difference between the price a producer is willing to accept for a good or service and the price they actually receive. Cooperative surplus is the sum of consumer surplus and producer surplus.

For Any Transaction, the Sum of Consumer Surplus and Producer