Which of the following expressions can be used to calculate the producer surplus (PS)?
A) PS = profit * output
B) PS = profit + fixed cost
C) PS = variable cost - fixed cost
D) PS = average cost * output

Question

Quizplus · Accepted Answer

Producer surplus is the difference between what producers are willing to accept for a good versus what they actually receive, often conceptualized as profit plus fixed costs.

Which of the Following Expressions Can Be Used to Calculate