What is the definition of producers' surplus?
A) price received minus maximum selling price
B) maximum selling price minus price received
C) price received minus minimum selling price
D) highest price minus lowest price
E) none of the above

Question

Quizplus · Accepted Answer

Producers' surplus is defined as the difference between the price producers actually receive for a good or service (the market price) and the minimum price at which they would be willing to sell that good or service. This represents the extra benefit or surplus producers receive from selling at the market price.

What Is the Definition of Producers' Surplus