Producer surplus is
A) the total difference between the total amount that producers actually receive for an item and the total amount that they would have been willing to accept.
B) the total difference between the total costs firms incur in producing an item and the utility consumers derive from purchasing the item.
C) the total difference between the total amount that consumers are willing to pay for an item and the total amount that producers would like to receive.
D) the total difference between the utility consumers derive from purchasing an item and the total costs firms incur in producing the item.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the amount that producers receive for a good or service and the minimum price that they would be willing to accept for that good. In other words, it is the extra amount of money that producers receive above and beyond what they would have been willing to accept in order to produce the good.

Producer Surplus Is