The Producer Surplus on a Unit of a Good Is

question 185

Multiple Choice

The producer surplus on a unit of a good is

• A) equal to the marginal benefit from the good minus its price.
• B) equal to the price of the good minus the marginal cost of producing it.
• C) always equal to consumer surplus.
• D) Both answers A and C are correct.
• E) Both answers B and C are correct.

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Definitions:

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