Producer surplus is the area
A) under the marginal benefit curve but above the market price.
B) under the marginal benefit curve but above the marginal cost curve.
C) below the market price but above the marginal cost curve.
D) under the marginal benefit curve.
E) above the marginal cost curve.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between what producers are willing to accept for a good or service versus what they actually receive. It's represented by the area below the market price and above the supply curve, which is based on marginal cost.

Producer Surplus Is the Area