Which of the Following Is the Definition of Producer Surplus

question 82

Multiple Choice

Which of the following is the definition of producer surplus?

• A) the price of a good minus the marginal cost of producing it, summed over the quantity produced.
• B) quantity produced in excess of the allocatively efficient amount.
• C) the total revenue received by the producer for a good minus the total cost of producing that good.
• D) the price of a good minus the cost of producing it.
• E) the revenue received for a good, minus the cost of producing it.

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Definitions:

Accounting Records

Documentation and books that keep track of the financial transactions of a business or individual, forming the basis for its financial statements.

Asset

Resources controlled by a business from which future economic benefits are expected to flow to the business, including both physical items and intangible properties.

Credit

An entry on the right side of a double-entry bookkeeping system that increases liabilities and equity or decreases an asset or expense.