Producer Surplus Is

question 75

Multiple Choice

Producer surplus is

• A)the value producers place on a good minus the price of the good.
• B)the price of the good minus the value producers place on it.
• C)zero if price equals marginal cost.
• D)greater the more elastic the supply of the good.
• E)equal to consumer surplus.

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Definitions:

Exclusive Right

A legal provision giving the holder the sole permission to produce, use, or sell a particular commodity or concept.

Cement

A binding agent used in construction that sets, hardens, and adheres to other materials, commonly used to bind sand and gravel in concrete.

Downward Sloping

A term typically used to describe a demand curve that shows the inverse relationship between the price of a product and the quantity demanded.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that consumers are willing to purchase.