Producer surplus is the
A)cumulative difference between the price producers receive and the price they require in order to produce.
B)difference between the brand name price and the generic brand price.
C)difference between the suggested retail price and the actual cost.
D)value of the mark-up over price.
E)value of extra sales generated by loss leaders.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the price a producer receives and the minimum price they require to produce a good or service. It represents the benefit that producers receive from being able to sell at a higher price than their production costs.

Producer Surplus Is the