Producer surplus is the
A) the difference between the maximum price consumers are willing and able to pay and the minimum price producers are willing to accept.
B) the difference between the maximum price consumers are willing and able to pay and the price actually paid to producers.
C) the difference between the amount a producer is willing to accept and the price actually received.
D) the area above the marginal cost curve.
E) the total amount producers received for a product.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the amount a producer is willing to accept for a product and the higher price they actually receive. This captures the extra benefit producers get by selling at market price when they would have been willing to sell at a lower price.

Producer Surplus Is the