What is producer surplus
A)the area under the supply curve to the left of the amount sold
B)the amount a seller is paid less the cost of production
C)the amount represented by the area under the supply curve
D)the area under the supply curve to the right of the amount sold

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the price a seller receives and the cost of production. It is the surplus amount that they receive for selling a good or service above and beyond what they needed to cover their costs. Therefore, option B - "the amount a seller is paid less the cost of production" is the correct answer.

What Is Producer Surplus