Answered: Which of the following does the…

Which of the following does the producer receive if the market price exceeds the cost of production? Question 2 options: a) Producer surplus b) Deadweight loss c) External benefit

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter4: Markets In Action

Section: Chapter Questions

Problem 20SQ

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Question

Which of the following does the producer receive if the market price exceeds the cost of production?

Question 2 options:

a)	Producer surplus

b)	Deadweight loss

c)	External benefit

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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