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13 June, 22:34

Producer surplus: A. is the difference between the maximum amount a person is willing to pay for a good and its current market price. B. is the difference between the true value of a product and the amount the firm wants to receive. C. represents the minimum amount a firm must receive for a particular product in order to be able to produce the product. D. is the difference between the current market price and the cost of production for the firm.

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  1. 13 June, 23:12
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    B. is the difference between the true value of a product and the amount the firm wants to receive.

    Explanation:

    Producer surplus refers to the surplus received by a producer, that is the amount in which the producer will sell the goods less the amount the actually received on sale of the product.

    In the given statement true value will be the market value the product will fetch and the value the firm expects is the value expected by producer therefore, above statement is best suitable to define producer surplus.

    B. is the difference between the true value of a product and the amount the firm wants to receive.
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