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7 September, 02:35

Producer surplus is the difference between a. the market price and the minimum price a buyer is willing to pay b. the market price and the minimum price a seller is willing to accept. c. the maximum price a seller is willing to accept and the market price. d. the maximum price a buyer is willing to pay and the market price

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  1. 7 September, 03:03
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    b. the market price and the minimum price a seller is willing to accept

    Explanation:

    The formula to find out the producer surplus is shown below:

    Producer surplus = Market price - minimum price to sell the goods

    It shows a difference between the market price and the minimum price for accepting the price

    Let us take an example, the market price is $10 and the minimum price for accepting the price is $5

    So, the producer surplus equal to

    = $10 - $5

    = $5
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