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1 October, 01:17

Producer surplus is:

a. the opportunity cost of production minus the cost of producing goods that go unsold.

b. measured using the demand curve for a good.

c. always a negative number for sellers in a competitive market.

d. the amount a seller is paid minus the cost of production.

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  1. 1 October, 01:37
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    Answer: Option (d) is correct.

    Explanation:

    Producer surplus is associated with the producer of a good. Graphically, producer surplus is the area between the upper portion of supply curve and equilibrium price level. Producer surplus is also defined as the difference between the price at which sellers are willing supply and the actual price they received.

    Producers surplus = Price paid by buyers - Cost of production
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