The difference between producer surplus and profits for a single firm is fixed costs.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the price received by a producer and the minimum price at which the producer is willing to sell a product, which does not take fixed costs into account. Profits, on the other hand, are the revenue earned by a firm after deducting all costs, including fixed costs. Therefore, fixed costs are the difference between producer surplus and profits for a single firm.

The Difference Between Producer Surplus and Profits for a Single