What is producer surplus?
What is producer surplus?
Producer surplus is the difference between the price a producer actually receives and the minimum price they would have accepted. For example, if a farmer receives £5 for a crate they were willing to sell for £3, the producer surplus is £2.
Step-by-step lessons on CIE Intl A Level Economics 2.5.2 meaning and significance of producer surplus. Each one builds up to exam-style questions.