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:

Per Capita Income

The average income earned per person in a given area or country, calculated by dividing the total income by the population size.

Revealed Preferences

is an economic theory that infers consumers' preferences based on their purchasing habits, assuming that their choices reveal their preference structure.

Francs

A currency that was previously used in countries like France, Switzerland, Belgium, and Luxembourg, with some forms still in use today in a limited capacity.

Consumption

The use of goods and services by households or the economy, often seen as a primary indicator of economic health.