Producer surplus directly measures
A)the well-being of sellers.
B)production costs.
C)excess demand.
D)unsold inventories.

Question

Quizplus · Accepted Answer

Producer surplus measures the difference between the price a seller is willing to accept for a good and the actual price they receive. This surplus represents the benefit (or profit) that the seller receives from participating in the market, and thus measures their well-being or economic gain. Options B, C, and D do not accurately describe producer surplus.

Producer Surplus Directly Measures