Producer surplus equals
A) total revenue minus total variable cost.
B) total revenue minus the sum of all marginal cost.
C) profit plus fixed cost.
D) All of the above.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between what producers are willing to accept for a good versus what they actually receive. All the given options (A, B, C) are different ways of conceptualizing this difference, taking into account costs, revenues, and profits.

Producer Surplus Equals