Producer surplus is defined as The area above MC and above the price of output The area below the market price of output and above supply The area above AVC and below ATC The area below supply and above the price of output

Producer surplus is defined as The area above MC and above the price of output The area below the market price of output and above supply The area above AVC and below ATC The area below supply and above the price of output

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter3: Market Demand And Supply

Section3.A: Consumer Surplus, Proudcer Suplus, And Market Efficency

Problem 9SQ

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Question

Producer surplus is defined as

	The area above MC and above the price of output
	The area below the market price of output and above supply
	The area above AVC and below ATC
	The area below supply and above the price of output

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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