The producer surplus is found by subtracting the and then adding the difference for all units sold.

The options for this question are:

A)  deadweight loss from the price

B) marginal cost from marginal benefit

C)  marginal cost from price

D)  price from marginal cost

The correct answer is A)  deadweight loss from the price .

Explanation:

The producer surplus is the difference between the total profit that a producer obtains when selling a good or service at its market price.

The surplus of the product arises by the law of diminishing returns. This means that the first unit that a producer sells is willing to sell it cheaper, but as it sells more additional units it raises the price (not counting the block sale). However, the price charged by each unit is always the same: the market price. In this way, enjoy a positive surplus of the first units you sell until you reach the last one in which the surplus will be zero.

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