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Mice21 [21]
3 years ago
11

Producer surplus is

Business
1 answer:
Kisachek [45]3 years ago
4 0

Answer:

The amount a seller is paid minus the cost of production.

Explanation:

Producer surplus refers to the difference between the producer's willingness to accept the price for the product and the price they actually received for the product.

It is calculated as follows:

Producers surplus = Amount a seller received - Cost of production

Or

Producers surplus = Actual amount received - Willingness to accept a price

It is a measure of producers welfare.

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