Producer surplus equals
A)Value to buyers - Amount paid by buyers.
B)Amount received by sellers - Costs of sellers.
C)Value to buyers - Costs of sellers.
D)Value to buyers - Amount paid by buyers + Amount received by sellers - Costs of sellers.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the amount received by sellers and the costs of sellers. Option A is the formula for consumer surplus, and option C mixes both concepts. Option D is a combination of both consumer and producer surplus formulas.

Producer Surplus Equals