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ECN437Producer Surplus

ECN437Producer Surplus - laugh I know someone who sold a...

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ECN437 Producer Surplus Producer surplus is the price received by a seller less the minimum amount  the seller is willing to accept in exchange for the good (see also:  willingness   to accept ). Someone who was willing to sell her old car for $2000 but  manages to get $2500 for it on eBay gets $500 of producer surplus. Don't 
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Unformatted text preview: laugh, I know someone who sold a car on eBay. For producers as a whole, producer surplus is the area between the price they receive and their willingness to accept, which is given by the height of the supply curve:...
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