Producer surplus measures theA. benefits to sellers of participating in a market. B. costs to sellers of participating in a market. C. price that buyers are willing to pay for sellers' output of a good or service. D. benefit to sellers of producing a greater quantity of a good or service than buyers demand.

Question

Business

Lance Long

13 May, 15:19

Producer surplus measures theA. benefits to sellers of participating in a market. B. costs to sellers of participating in a market. C. price that buyers are willing to pay for sellers' output of a good or service. D. benefit to sellers of producing a greater quantity of a good or service than buyers demand.

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Answers (1)

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Lexi Ashley · Answer 1

Answer: Option (A) is correct.

Explanation:

Producer surplus measures the benefits of the sellers or producers. producer surplus is the difference between the cost of production and the price paid by the consumer for a good or we can say price receive by the seller. Graphically, it is the area above the supply curve and under the equilibrium price that is paid by the consumer.