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Unformatted text preview: the price they actually receive. Graphically, producer surplus is the area above the supply curve below the market price. The sum of consumer surplus and producer surplus is called net national welfare. When net national welfare increases, society is better off. Different Tastes as a Basis for Trade Assume identical PPC's but different tastes. There are gains from trade even in this case. Allowing more products and more countries makes the analysis more difficult but doesn't alter the basic gains from trade....
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This note was uploaded on 11/22/2011 for the course FIN FIN1100 taught by Professor Bradrifkin during the Fall '09 term at Broward College.
- Fall '09
- Personal Finance