Question

What is the difference between economic profit and producer​ surplus? A. Economic profit includes opportunity costs but producer surplus does not. B. Producer surplus includes variable costs but economic profit does not. C. Economic profit includes fixed costs but producer surplus does not. D. Economic profit includes marginal costs but producer surplus does not. E. Economic profit includes government taxes but producer surplus does not.

Answer 1

Answer:

c

Explanation:

Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product

Producer surplus = price – least price the seller is willing to accept

Economic cost is accounting profit less implicit cost

Accounting profit= total revenue - explicit cost

Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.