C9: Produce Surplus Flashcards
1
Q
Producer surplus 1 unit
A
mr-mc
2
Q
Producer surplus 1 unit (PC)
A
P - mc
3
Q
Market Producer Surplus
A
Sum of all indv producer suplus
4
Q
PS graphically
A
PS area below price and above S curve
5
Q
Total Surplus
A
Market PS + Market CS
6
Q
Total surplus PC
A
max at Peq,Qeq
7
Q
Explanation of max TS
A
Marginal benefit < Marginal cost (either to producers or consumers, depending the way the question is asked)
8
Q
A
