Producer’s Surplus:- is the difference between the total amount producers receive for any given quantity of a product and the minimum amount they would have been willing to accept for that quantity.
It can also be defined as the gain to producers arising from the difference between the price they actually receive (market price) and the price they were willing to accept instead of going without selling any of the products (expected price)
It’s measured diagrammatically by the area above the supply (marginal cost) curve but below the price at which that quantity is sold.
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