The difference between the value of a product enjoyed by consumers and the total variable costs incurred by producers in a competitive market for that product is
A)producer surplus.
B)consumer surplus.
C)the sum of consumer surplus and producer surplus.
D)the difference between consumer surplus and producer surplus.

Question

Quizplus · Accepted Answer

This difference represents the total economic benefit to both consumers and producers, which is the sum of consumer surplus (the difference between what consumers are willing to pay and what they actually pay) and producer surplus (the difference between the market price and the minimum price at which producers are willing to sell).

The Difference Between the Value of a Product Enjoyed by Consumers