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Producer surplus for a perfectly competitive firm is:

A. Revenue minus total cost
B. Revenue minus variable cost
C. Total cost minus variable cost
D. Revenue minus fixed cost

Answer :

Answer:

b. Revenue minus variable cost

Explanation:

Producer surplus for a perfectly competitive firm is Revenue minus total variable cost. Option b is correct because the producer surplus is profit minus total variable cost when the fixed cost is zero and the marginal cost is increasing.

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