producer surplus is the difference between the lowest price a firm would be willing to accept and the price…
producer surplus is the difference between the lowest price a firm would be willing to accept and the price it actually receives. this component of economic surplus is illustrated in the diagram by area
Answer
Brief Explanations:
Producer surplus is the area above the supply - curve and below the market - price. In the given diagram, area B is above the supply curve $S_1$ and below the equilibrium price line. Area A is consumer surplus and area C is part of the total surplus but not producer surplus.
Answer:
B