121k views
5 votes
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.

User Aamirl
by
5.5k points

1 Answer

4 votes

Answer: Option (A) is correct.

Step-by-step 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.

User Pshoukry
by
5.5k points