Why does producer surplus arise? Consumers buy less of some commodities than they need. Sellers' costs of production for some goods are less than the market price. Producers make more off some commodities than the consumers desire. Sellers manufacture more units of a good than consumers are willing to purchase.

Why does producer surplus arise? Consumers buy less of some commodities than they need. Sellers' costs of production for some goods are less than the market price. Producers make more off some commodities than the consumers desire. Sellers manufacture more units of a good than consumers are willing to purchase.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter6: Simple Pricing

Section: Chapter Questions

Problem 8MC

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Similar questions

Which quantity does Producer Surplus NOT measure? Question 28 options: the amount sellers are paid less the amount they were willing to accept the benefit to sellers of participating in a market the amount sellers receive above the minimum they would accept the total value of a good to sellers
Producer surplus measures: A. The same thing as a market or quantity surplus B. The difference between the market price and the producer's willingness to sell. C. The additional cost of engaging in a market transaction. D. "The additional benefit of being a producer in the market, no matter if the producer has sold anything or not."
The total surplus (consumer surplus plus producer surplus) is greatest when which of the following occurs? a.Producer surplus is maximized. b.Consumer surplus is maximized. c.All of these are correct d.The market is at equilibrium.
___________ surplus is the difference between the maximum price a consumer is (or consumers are) willing to pay for a product and the actual [market] price. Producer Consumer
When a market is in equilibrium, the total amount of consumer surplus must be--------- the total amount of producer surplus. 1)equal to 2)larger than 3)less than 4)none of these
Producer surplus: is the difference between the maximum prices consumers are willing to pay for a product and the lower equilibrium price. rises as equilibrium price falls. is the difference between the minimum prices producers are willing to accept for a product and the higher equilibrium price. is the difference between the maximum prices consumers are willing to pay for a product and the minimum prices producers are willing to accept.
Producer surplus is the difference between Group of answer choices the price the producer receives and the price they are willing to accept for the good or service. the willingness to pay for a good and the prices the seller is willing to accept for the good or service. the willingness to pay for a good and the amount paid to get it. the price paid for a good and the amount of the good produced. supply and demand.
Can you help me with this please? If there is a surplus of goods in the market would that still lead to a producer surplus? Producer surplus being defined as the amount a seller is paid for a good minus the sellers cost of providing it.
The market for wheat is perfectly competitive with the typical market demand and supply curves. The government imposes a binding minimum price of wheat on the market. The government promises to buy any resulting excess supply of wheat. However, because they just keep it in a warehouse, the Marginal Benefit of any wheat the government buys is zero. With the minimum price and the government buying excess supply, Consumer Surplus _____ and Market Surplus _____. A. increases; says the same or increases. B. increases; increases. C. could increase or decrease; decreases. D. could increase or decrease; stays the same or increases. E. stays the same; decreases.