The benefit to sellers of participating in a market is measured by the
A)amount of taxes collected on sales of the good.
B)producer surplus.
C)amount sellers receive for their product.
D)sellers' willingness to sell.

Question

Quizplus · Accepted Answer

The benefit to sellers of participating in a market is measured by their producer surplus – the difference between the price they are willing to sell their good at and the price they actually receive. This measures the additional benefit gained by the seller from participating in the market, beyond what they would have received if they did not participate. Taxes collected on sales of the good (A) are not a benefit to sellers, but a cost; the amount sellers receive for their product (C) is simply their revenue, and does not capture the additional benefit gained from participating in the market; and sellers' willingness to sell (D) is a measure of their supply behavior, but does not necessarily capture the benefit they receive from market participation.

The Benefit to Sellers of Participating in a Market Is