Economics Supply And Demand Questions
Producer surplus is a measure of the benefit or profit that producers receive from selling goods or services at a price higher than the minimum price they are willing to accept. It represents the difference between the actual price received by producers and the minimum price they are willing to accept. Producer surplus is calculated by subtracting the total cost of production from the total revenue earned by producers. It is a measure of the economic welfare or gain that producers experience in a market transaction.