Consumer surplus is a gain from exchange, but producer surplus is a loss from exchange.

Question

BlackTom AI · Accepted Answer

The statement in the question links consumer surplus to a gain from exchange and then claims that producer surplus is a loss from exchange. 
Option A: 'True' — This is not correct. Consumer surplus does represent a gain from exchange for consumers, but producer surplus is also a gain from exchange for producers, not a loss. The basic idea is that both sides benefit from voluntary trade, though in different amounts and at different prices.
Option B: 'False' — This is the accurate choice. Producer surplus measures the difference between the price producers receive and the minimum price at which they would be willing to produce each unit. When a transaction occurs at a market price above a producer’s marginal cost, the producer gains; there is no loss to producers in the standard surplus framework. The same logic applies to consumer surplus, which is the difference between what consumers are willing to pay and what they actually pay, representing a benefit to consumers. 
In summary, the paired concepts are both gains from exchange for the respective sides, so labeling producer surplus as a loss is incorrect.

Consumer surplus is a gain from exchange, but producer surplus is a loss from exchange.单项选择题

类似问题

The sum of consumer surplus and producer surplus is equal to

According to the lecture, economic welfare or value created represents:

Consider a perfectly competitive market at equilibrium. The equilibrium price defines

Amanda buys a ruby for $330 for which she was willing to pay $340. The minimum acceptable price to the seller, Tony, was $140. Tony experiences a

Figure 9-2Refer to Figure 9-2. The increase in total surplus resulting from trade is

更多留学生实用工具

智能学习助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单