If the market price is at equilibrium, the producer surplus is minimized.

Question

Quizplus · Accepted Answer

If the market price is at equilibrium, both the consumer surplus and producer surplus are maximized, not minimized. Producer surplus refers to the difference between the market price and the minimum price a producer is willing to accept for a good or service. At equilibrium, the market price is exactly what the producer is willing to accept, so their surplus is maximized.

If the Market Price Is at Equilibrium, the Producer Surplus