Producer surplus refers to
A) the difference between the market price for a good and the minimum price the producer would accept
B) the difference between the market price for a good and the maximum price a consumer would be willing to pay
C) the excess supply a firm produces for the market
D) the profit a producers receives for a good
E) the difference between consumer surplus and the price of the good

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the market price for a good and the minimum price a producer would accept for it. This represents the additional benefit or surplus the producer receives from selling the good at the market price.

Producer Surplus Refers to