Question

Producer surplus is

A) current market price.
B) the difference between the maximum a person is willing to pay and current market price.
C) the difference between current market price and full costs of production for the firm.
D) the difference between willingness to sell and full costs of productions for the firm.

Answer 1

B) the difference between the maximum a person is willing to pay and current market price.

Step-by-step explanation:

Consumer surplus is difference between maximum price consumer wants to pay and actual price he pays.