Question

The difference between the minimum price at which a producer is willing and able to sell a unit of a good or service and the price actually received is referred to as _______.

Answer 1

Answer:

Seller Surplus

Explanation:

In business terms, there is a difference in the expected value what a seller expects to receive from the products it sells and from the amount it actually earns.

The cost of the product not only involves the monetary cost but it also involves the cost in terms of efforts involved to produce an article.

When a seller puts a product in the market, then he tries to have it a market value more than its cost. When such market value is realised then the difference in cost and market value is surplus for the supplier or producer.

But in cases where the consumer is efficient enough to bargain such product and only pays an amount which is less than the cost, then there arises seller deficit, which is represented as a negative seller surplus.