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 their costs. Option A is the formula for consumer surplus, while Option C does not include the seller's costs. Option D includes both consumer and producer surplus, but it also adds the amount paid by buyers, which is not relevant to producer surplus.

Producer Surplus Equals