Producer surplus is the ________.
A) sum of a seller's reservation value and the price he finally receives
B) difference between a seller's reservation value and the price he finally receives
C) product of a seller's reservation value and the price he finally receives
D) ratio of a seller's reservation value to the price he finally receives

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the price a seller actually receives for a good and the minimum price they would have been willing to accept (reservation value). It measures the benefit to sellers participating in the market.

Producer Surplus Is the ________