The difference between producer surplus and economic profit is
A)marginal cost.
B)average fixed cost.
C)variable costs.
D)fixed costs.
E)total costs.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the price received by the producer and the marginal cost of production, while economic profit is the total revenue minus both explicit and implicit costs, which include fixed costs. Therefore, the difference between the two concepts is fixed costs (choice D). The other choices are not directly related to the difference between producer surplus and economic profit.

The Difference Between Producer Surplus and Economic Profit Is