Producer surplus is
A)the difference between the maximum price consumers are willing to pay and the minimum price producers are willing to accept.
B)the excess of the amount received from the sale of a good or service over the cost of producing it.
C)equal to the marginal cost of production.
D)equal to the area under the supply curve.
E)the total amount paid for the good.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the amount received from selling a good and the cost of producing it. It represents the benefit that producers receive from participating in a market. Options A, C, D, and E do not accurately describe producer surplus.

Producer Surplus Is