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How to calculate producer surplus
ChannelFree Econ HelpDescription from the creator
This video goes over what producer surplus is, and how to calculate producer surplus. More information on producer surplus and this video is available at freeeconhelp.com/2011/09/what-is-producer-surpl…
The trick to calculating producer surplus is to remember that producer surplus is the area beneath the market price and above the marginal cost curve.
While producer surplus is NOT profit, it can be helpful to think of producer surplus as profit because it is the difference between the amount a firm is receiving and the price that it is paying to produce the individual unit of a good. (for those interested, producer surplus isn't equal to profit because it ignores fixed costs...).
The trick to calculating producer surplus is to remember that producer surplus is the area beneath the market price and above the marginal cost curve.
While producer surplus is NOT profit, it can be helpful to think of producer surplus as profit because it is the difference between the amount a firm is receiving and the price that it is paying to produce the individual unit of a good. (for those interested, producer surplus isn't equal to profit because it ignores fixed costs...).
About this tutorial
Free Econ Help published this 3:29 video tutorial on November 1, 2011. It has been watched 160,841 times on YouTube.
- Channel
- Free Econ Help
- Category
- Education
- Duration
- 3:29
- Published
- November 1, 2011
- Views
- 160,841
- Likes
- 761
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This tutorial in other languages
- FRComment calculer le surplus du producteur
- ES¿Cómo calcular el excedente del productor
- PTComo calcular o excedente do produtor
- ITCome si calcola il surplus del produttore
- DEWie Produzent Überschuss berechnen
- NLHoe te producentensurplus berekenen
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- PLJak obliczyć nadwyżkę producenta
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- ARكيفية حساب فائض المنتج
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- IDBagaimana menghitung surplus produsen