How to Calculate Producer Surplus - Quickonomics
quickonomics.com
How to Calculate Producer Surplus - Quickonomics
Producer Surplus describes the difference between the amount of money at which sellers are willing and able to sell a good or service (i.e. willingness to sell) and the amount they actually end up receiving (i.e. the market price). Calculating producer surplus follows a 4-step process: (1) draw the supply and...
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