Section 2
Producer Surplus
Book
Version 3
By Boundless
By Boundless
Boundless Economics
Economics
by Boundless
3 concepts
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Market Power
Market power is a measure of a firm's economic strength that affects its pricing and supply decisions.
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Defining Producer Surplus
Producer surplus is the difference between the amount producers get for selling a good and the amount they want to accept for that good.
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Impact of Changing Price on Producer Surplus
Producer surplus is affected by changes in price, the demand and supply curve, and the price elasticity of supply.