The difference between the market price of a good and a producer's marginal cost of every unit of the good is called
A)consumer surplus.
B)producer surplus.
C)marginal surplus.
D)excess supply.
E)market surplus.

Question

Quizplus · Accepted Answer

The difference between the market price and a producer's marginal cost of every unit of a good is called producer surplus. This represents the additional profit that a producer earns above and beyond their variable costs of production. Consumer surplus refers to the difference between the maximum price a consumer is willing to pay for a product and the actual price they pay, while excess supply occurs when the quantity supplied exceeds the quantity demanded at a given price. Marginal surplus and market surplus are not commonly used economic terms.

The Difference Between the Market Price of a Good and a Producer's