The difference between the ________ and the ________ from the sale of a product is called producer surplus.
A) lowest price a firm would have been willing to accept; price it actually receives
B) highest price a firm wold have been willing to accept; lowest price it was willing to accept
C) cost to produce a product; price a firm actually receives
D) cost to produce a product; profit received

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the price a firm actually receives from the sale of a product and the lowest price that it would have been willing to accept for that product. Option A is the correct choice as it mentions the lowest price a firm would have accepted, which is the opportunity cost of producing the product, and the price it actually receives, which is the revenue earned from the sale of the product.

The Difference Between the ________ and the ________ from the Sale

The Difference Between the and the from the Sale