Producer Surplus for the Whole Market Can Be Thought of As

question 145

Multiple Choice

Producer surplus for the whole market can be thought of as:

• A) total profit.
• B) variable operating profit plus factor rents.
• C) total profit minus factor rents earned by lower cost firms.
• D) total profit plus factor rents earned by lower cost firms.

---

Definitions:

Unlimited Liability

A legal structure in which owners are personally responsible for all of the company's debts and liabilities without limit.

Limited Liability

A legal structure where a company's owners are protected from personal liability for the company's debts or liabilities.

Limited Liability

Refers to a legal structure where a company's owners are not personally liable for the company's debts or liabilities.

Sole Proprietorship

A business owned and operated by a single individual, where there is no legal distinction between the owner and the business entity.