Producer Surplus

The supply curve shows the minimum price at which producers would be willing to supply a given level of output.
Producer surplus is the difference between the amount that producers actually receive and the minimum amount that they would have to receive in order to supply the given level of output. On a graph, producer surplus can be shown as the area above the supply curve and below the prevailing market price.

So, on the graph to the left, which region represents producer surplus? Click on your answer below.

c

g

h

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