Producer surplus for an individual seller is equal to:
A) the price of the good minus the cost of producing the good.
B) the cost of the good minus the willingness to pay for the good.
C) the willingness to pay for the good minus the price of the good.
D) the cost of the good minus the price of the good.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the price at which a seller is willing to sell a good and the actual price they receive, which is the price of the good minus the cost of producing it.

Producer Surplus for an Individual Seller Is Equal To