Principles of Microeconomics / Unit 2 MIC 0129 short lesson, about 20 seconds
Producer Surplus
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The idea
Producer surplus is the gap between the price received and the least the seller would have accepted, summed over every unit: the area above the supply curve and below the price.
In practice
A seller who would have taken forty-five and gets eighty gains thirty-five.
Where people slip
Producer surplus is not profit: it counts price above marginal cost, unit by unit, and ignores fixed costs.
Your place on the trail
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