Producer Surplus Is

question 97

Multiple Choice

Producer surplus is

• A)the difference between the maximum price consumers are willing to pay and the minimum price producers are willing to accept.
• B)the excess of the amount received from the sale of a good or service over the cost of producing it.
• C)equal to the marginal cost of production.
• D)equal to the area under the supply curve.
• E)the total amount paid for the good.

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Definitions:

Rate of Movement

The speed at which a certain object or substance moves through space or a medium.

Unconsolidated

Referring to sediments or materials that are loosely held together or not cemented, often allowing for the easy movement of water or air.

Weathered Bedrock

The result of bedrock being broken down by physical, chemical, or biological weathering processes, often leading to soil formation.

Terracing

The practice of shaping steep terrain to provide flat areas suitable for agriculture or ranching, or to protect soil from erosion.