Producer surplus is
A) the difference between the maximum a person is willing to pay and current market price.
B) the difference between current market price and full costs of production for the firm.
C) the difference between willingness to sell and full costs of productions for the firm.
D) current market price.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the current market price and the full costs of production for the firm. It represents the additional benefit the producer receives for selling a product at the market price that is higher than the minimum price at which they would be willing to sell.

Producer Surplus Is