Producer surplus is the:
A)amount represented by the area under the demand curve
B)amount a seller is paid less the cost of production
C)amount represented by the area under the supply curve
D)amount a seller is paid plus the cost of production

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the amount a seller is paid for a good and the seller's cost of production. This represents the profit or surplus the producer gains from the transaction.

Producer Surplus Is The