Is the Producer Surplus Same as the Profit

question 16

Multiple Choice

Is the producer surplus same as the profit?

• A) Yes, they are the same, because the producer surplus is the sum of profits from each unit sold.
• B) Yes, they are the same, because the profit is the revenue minus the sum of marginal costs of each unit sold.
• C) No, they are different, because the profit is always at least the producer surplus.
• D) No, they are different, because the producer surplus does not take into account the fixed cost.

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