Asked by Caitlin Saalfrank on May 10, 2024
Verified
Producer surplus is the difference between the most a person is willing to pay and market price.
Producer Surplus
The difference between what producers are willing to accept for a good versus what they actually receive.
Market Price
The present cost at which an item or service is available for purchase or sale in a market.
- Acquire knowledge regarding the notion of producer surplus and the steps for calculating it.
Verified Answer
YS
Yousef SalehMay 13, 2024
Final Answer :
False
Explanation :
Producer surplus is the difference between the market price and the lowest price a producer would be willing to accept for their goods or services.
Learning Objectives
- Acquire knowledge regarding the notion of producer surplus and the steps for calculating it.