Producer surplus is
A. the total difference between the total costs firms incur in producing an item and the utility consumers derive from purchasing the item.
B. the total difference between the utility consumers derive from purchasing an item and the total costs firms incur in producing the item.
C. the total difference between the total amount that producers actually receive for an item and the total amount that they would have been willing to accept.
D. the total difference between the total amount that consumers are willing to pay for an item and the total amount that producers would like to receive.
Answer: C
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Using the standard 45-degree line diagram, how does an increase in autonomous consumption effect the expenditure schedule?
a. It shifts the expenditure schedule downward. b. It shifts the expenditure schedule upward. c. It increases the slope of the expenditure schedule. d. It decreases the slope of the expenditure schedule.
Economist call a person who does not pay for a good or service they consume
A. A free loader B. A free rider C. Selfish D. An opportunist