ECONOMICS
CONSUMERS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Measured using the demand curve for a good
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Always a negative number for sellers in a competitive market
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The amount a seller is paid minus the cost of production/opportunity cost
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The opportunity cost minus the cost of producing goods that go unsold
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Detailed explanation-1: -Producer surplus is the total amount that a producer benefits from producing and selling a quantity of a good at the market price. The total revenue that a producer receives from selling their goods minus the marginal cost of production equals the producer surplus.
Detailed explanation-2: -Producer surplus = Market price – Producer’s Minimum Acceptable Price. Alternatively, it is also calculated as follows: Producer surplus = Total Revenue – Production Cost.
Detailed explanation-3: -Producer surplus equals the amount sellers receive for their goods minus their costs of production, and it measures the benefit sellers get from participating in a market. Producer surplus can be computed by finding the area below the price and above the supply curve.
Detailed explanation-4: -Producer surplus is the amount a seller is paid minus the cost of production. It measures the benefit to sellers participating in a market.
Detailed explanation-5: -Producer surplus is the difference between the amount that a seller would be willing to accept for their products/services versus what those products/services are actually worth on the market.