Producer Surplus Is the

question 204

Multiple Choice

Producer surplus is the

• A) the difference between the maximum price consumers are willing and able to pay and the minimum price producers are willing to accept.
• B) the difference between the maximum price consumers are willing and able to pay and the price actually paid to producers.
• C) the difference between the amount a producer is willing to accept and the price actually received.
• D) the area above the marginal cost curve.
• E) the total amount producers received for a product.

---

Definitions:

Savings Account

A savings account is a deposit account held at a financial institution that provides an interest rate to the account holder, offering a safe place to keep money while earning returns.

Interest

The charge for borrowing money or the compensation paid by the borrower to the lender for the use of borrowed funds.

Withdraw

The act of removing funds from a bank account, or the process of pulling out of an agreement or investment.

Inherited

Property or assets received from an ancestor or predecessor typically through a will or succession.