Which of the following is the definition of producer surplus?
A) the price of a good minus the marginal cost of producing it, summed over the quantity produced.
B) quantity produced in excess of the allocatively efficient amount.
C) the total revenue received by the producer for a good minus the total cost of producing that good.
D) the price of a good minus the cost of producing it.
E) the revenue received for a good, minus the cost of producing it.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the price that a producer receives and the marginal cost of producing the good. The formula for calculating producer surplus is the price of a good minus the marginal cost of producing it, summed over the quantity produced.

Which of the Following Is the Definition of Producer Surplus