When producers would have been willing to accept lower prices at various quantities produced than the market clearing price, the differences are called
A)producer surplus.
B)monopoly profits.
C)opportunity cost.
D)deadweight loss.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the market price and the willingness of producers to produce and sell a good or service. When producers are willing to accept lower prices than the market clearing price, it means they are making more profit than they would have if they had to sell at the lower price. This extra profit is the producer surplus.

When Producers Would Have Been Willing to Accept Lower Prices