Producer surplus is
A)represented on a graph by the area below the demand curve and above the supply curve.
B)the amount a seller is paid minus the cost of production.
C)also referred to as excess supply.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between what producers are willing to accept for a good or service and what they actually receive, which is the amount a seller is paid minus the cost of production.

Producer Surplus Is