Which of the following is the definition of producer surplus?
a. the difference between the lowest price a firm would have been willing to accept and the price it actually receives
b. the additional cost to a firm of producing one more unit of a good or service
c. the difference between the highest price a consumer is willing to pay and the price the consumer actually pays
d. the additional benefit to a consumer from consuming one more unit of a good or service

A. the difference between the lowest price a firm would have been willing to accept and the price it actually receives.

Explanation:

Producer surplus is the measure of the welfare of the producer.

producer surplus is defined as the difference between the lowest price the company or a firm is willing to accept and the price that is received by the firm actually.

It is also shown by the graph of Price v/s Quantity. The area of this graph represents the Producer Surplus.

1) d

2)c

3)b

4) a

5)c

6) c

answer; eliminate parking problems in cities, because a car took up only half as much space as a horse and buggy;