If the price is greater than the marginal cost of producing a good,the seller has
A) no benefit from the sale.
B) a loss.
C) some producer surplus from the sale.
D) some negative consumer surplus from the sale.
E) None of the above answers is correct.

Question

Quizplus · Accepted Answer

If the price is greater than the marginal cost of producing a good, the seller will have some producer surplus from the sale. This is because the producer is receiving more revenue for the good than the cost of producing it, therefore making a profit.

If the Price Is Greater Than the Marginal Cost of Producing