Producer surplus is:
a. Found on a graph as the area under the equilibrium price and above the supply curve.
b. The net gain in economic well-being associated with producing and selling the equilibrium quantity of a good.
c. Used to measure the impact of a change in price on the economic well-being of producers.
d. All of the above.
Please explain. Thank you!
Producer surplus is the area under equilibrium price and above supply curve. It is the surplus of firm equals willingness to sell minus the cost of production.
the correct option is (a)
Producer surplus is: a. Found on a graph as the area under the equilibrium price and...
QUESTION 38 On a graph, producer surplus is represented by the area A. below the demand curve and above price. O B. between the demand and supply curves. C. below the price and above the supply curve. D. below the supply curve and to the left of equilibrium quantity.
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