What Is Producer Surplus

question 188

Multiple Choice

What is producer surplus

• A)the area under the supply curve to the left of the amount sold
• B)the amount a seller is paid less the cost of production
• C)the amount represented by the area under the supply curve
• D)the area under the supply curve to the right of the amount sold

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Definitions:

Class

A category or grouping used to organize items, objects, or concepts based on shared characteristics or attributes.

Declining-Balance Depreciation

A method of depreciation that results in larger depreciation expenses during the earlier years of an asset's life and smaller charges in the later years.

Straight-Line Depreciation

A method of computing depreciation for accounting purposes where an asset's cost is reduced uniformly over its useful life.

Tax Savings

Reduction in tax payments achieved through allowable deductions, credits, or adjustments.