1. What is meant by producer surplus? aIt is the difference between a producer's minimum selling price and the actual price. bIt is the total quantity of a good produced by the seller. cIt is the difference between the producer's marginal cost and the price. dIt is a measure of the total benefit to producers resulting from the purchase of an input.

Producer surplus is the amount of money a producer earns by producing and selling the value of the…

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Principles of Macroeconomics (MindTap Course List)

7th Edition

ISBN:9781285165912

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Consumers, Producers, And The Efficiency Of Markets

Section: Chapter Questions

Problem 7PA

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1. What is meant by producer surplus?

	a	It is the difference between a producer's minimum selling price and the actual price.
	b	It is the total quantity of a good produced by the seller.
	c	It is the difference between the producer's marginal cost and the price.
	d	It is a measure of the total benefit to producers resulting from the purchase of an input.

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