Producer surplus for a particular unit of a good is the:
A)difference between the market price and the seller's cost of producing that unit.
B)sum of the market price and the seller's cost of producing that unit.
C)ratio of the market price to the seller's cost of producing that unit.
D)product of the market price and the seller's cost of producing that unit.
E)ratio of the market price to the seller's cost of producing that unit multiplied by 100.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the market price and the seller's cost of producing that unit. It represents the amount of surplus profit that the seller earns above their cost of production.

Producer Surplus for a Particular Unit of a Good Is