Answered: 3.Producer Surplus is which of the…

3.Producer Surplus is which of the following (check all that apply) a. Profit plus fixed costs b. total revenue minus total cost c. total revenue minus total cost d. Total revenue minus variable cost

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Firms In Competitive Markets

Section: Chapter Questions

Problem 9PA

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Question

3.Producer Surplus is which of the following (check all that apply)

a. Profit plus fixed costs

b. total revenue minus total cost

c. total revenue minus total cost

d. Total revenue minus variable cost

Definition Definition Producer’s gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price and up to the equilibrium quantity.

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