Question

The difference between the actual price that a producer receives and the minimum acceptable price the producer is willing to accept it called the producer:

A. Revenues
B. Surplus
C. Costs
D. Utility

Answer 1

The difference between the actual price a producer receives and the minimum price they would accept is called the producer surplus. Correct answer is B. Surplus.

Step-by-step explanation:

The difference between the actual price that a producer receives and the minimum acceptable price the producer is willing to accept is called the producer surplus. This surplus represents the extra benefit that producers receive from selling a good or service. It is calculated by taking the price the producer actually received for a product and subtracting the price the producer would have been willing to accept.

It is one of the key concepts in understanding market efficiency, alongside consumer surplus and social surplus. It is the extra benefit that producers receive from selling a good or service. Producer surplus is measured by subtracting the price the producer would have been willing to accept from the price the producer actually received. So, Correct answer is B. Surplus.