The difference between the actual price that a producer receives and the minimum acceptable price a producer is willing to accept is
A) the consumer surplus.
B) the producer surplus.
C) allocative efficiency.
D) productive efficiency.

Question

Quizplus · Accepted Answer

The difference between the actual price that a producer receives and the minimum acceptable price a producer is willing to accept is known as the producer surplus. This surplus reflects the benefit that producers receive from participating in the market by selling their goods or services at a price above their minimum acceptable level. Therefore, B is the correct answer. Allocative efficiency refers to the optimal allocation of resources, while productive efficiency refers to producing output at the minimum possible cost. Consumer surplus, on the other hand, is the difference between the maximum price a consumer is willing to pay and the actual price paid.

The Difference Between the Actual Price That a Producer Receives