Producer surplus is
A)measured using the demand curve for a good.
B)always a negative number for sellers in a competitive market.
C)the amount a seller is paid minus the cost of production.
D)the opportunity cost of production minus the cost of producing goods that go unsold.

Question

Quizplus · Accepted Answer

Producer surplus is the amount a seller is paid for a good minus the cost of production. It represents the benefit that sellers receive beyond what they needed to make to produce the good. It is not measured using the demand curve for a good, nor is it always negative or related to unsold goods.

Producer Surplus Is