Define “producer surplus.”
Please provide the best answer for the statement.
Producer surplus is the benefit surplus received by a producer or producers through market transactions. A producer surplus arises because some producers are willing to sell a product at a lower price than the equilibrium price. Producer surplus is measured as the difference between the actual price the producer receives (or producers receive) and the minimum acceptable selling price.
You might also like to view...
The tax wedge in the figure above is equal to ________ per hour, which creates an after-tax real wage rate of ________ per hour and employment of ________ billion hours per year
A) $10; $35; 250 B) $10; $35; 200 C) $15; $20; 200 D) $5; $35; 200 E) $15; $30; 250
A prominent postwar pattern of U.S. government budget deficits was broken in 1983-1990 as
A) recession was accompanied by a shrinking deficit. B) recession was accompanied by a growing deficit. C) recovery from recession was accompanied by a shrinking deficit. D) recovery from recession was accompanied by a growing deficit.