Producer surplus is the ________ summed over the quantity produced.
A) price of the good minus the marginal cost of producing it
B) marginal benefit of the good minus its marginal cost
C) marginal benefit of the good minus its price
D) marginal cost of the good minus the opportunity cost of producing it
E) None of the above answers is correct.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the price at which a producer is willing and able to sell a good and the marginal cost of producing it. This difference is then multiplied by the quantity produced to get the total producer surplus. Therefore, the correct answer is A, where price minus marginal cost represents the producer surplus.

Producer Surplus Is the ________ Summed Over the Quantity Produced