if the output level is q1, then the sum of the consumer and producer surplus is, a) bce.
Understanding the fundamental notions that economists use to describe how consumer and producer surplus are related is key when talking about consumer and producer surplus. A demand curve, also known as a marginal benefit curve (MB), and a supply curve, also known as a marginal cost curve, may both be graphed to show the consumer and producer surplus (MC). Consumer surplus is the financial advantage realized when a customer purchases a something for less money than they would typically be prepared to pay. The marginal cost is the comparable product unit price along the supply curve (MC).
The price difference between the lowest cost to supply the market and the real price customers are ready to pay, on the other hand, is known as the producer surplus. The marginal cost is the cost per unit of a good along the supply curve (MC).
The area above each additional unit of consumption on a consumer surplus graph is referred to as the total consumer surplus. The total producer surplus is the region above the supply curve for every extra unit that is brought to market.
if the output level is q1, then the sum of the consumer and producer surplus is, a) bce.
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