Producer Surplus Is Equal to

question 34

Multiple Choice

Producer surplus is equal to

• A) the area under the supply curve.
• B) the difference between price and average cost for all units sold.
• C) the difference between price and marginal cost for all units sold.
• D) the firm's profit when fixed costs exist.

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Definitions:

Skills

The abilities and expertise a person has acquired through practice and education that enable them to perform specific tasks.

Level

A particular height or distance upward or position in a scale or sequence.

Effectiveness

The degree to which objectives are achieved and targeted problems are solved.

Assess

To evaluate or estimate the nature, ability, or quality of something.