producer's surplus (Meaning)
producer's surplus ()
Any profit above the normal rate of interest and wages accruing to a producer on account of some monopoly (temporary or permanent) of the means or materials of production; -- called also Producer's rent.
Synonyms & Antonyms of producer's surplus
No Synonyms and anytonyms found
producer's surplus Sentence Examples
- Producer's surplus refers to the difference between the price at which producers are willing to sell a good and the actual price they receive in the market.
- When the market price exceeds the minimum price a producer is willing to accept, producer's surplus is generated.
- Producer's surplus is depicted graphically as the area above the supply curve and below the market price.
- A producer's surplus represents the additional profit that producers gain from selling goods at prices higher than their production costs.
- The concept of producer's surplus is important in understanding the distribution of benefits between producers and consumers in a market.
- Policies that increase market prices, such as tariffs or subsidies, can result in higher producer's surplus for domestic producers.
- Producer's surplus can be calculated by subtracting the total cost of production from the total revenue earned by producers.
- The magnitude of producer's surplus depends on factors such as the elasticity of supply and demand and the level of competition in the market.
- Producer's surplus contributes to the overall welfare of producers and provides an incentive for them to continue producing goods.
- Efficient markets tend to maximize producer's surplus by allocating resources to their most valued uses.
FAQs About the word producer's surplus
Any profit above the normal rate of interest and wages accruing to a producer on account of some monopoly (temporary or permanent) of the means or materials of
No synonyms found.
No antonyms found.
Producer's surplus refers to the difference between the price at which producers are willing to sell a good and the actual price they receive in the market.
When the market price exceeds the minimum price a producer is willing to accept, producer's surplus is generated.
Producer's surplus is depicted graphically as the area above the supply curve and below the market price.
A producer's surplus represents the additional profit that producers gain from selling goods at prices higher than their production costs.
