Section 2
Producer Surplus
Book
Version 3
By Boundless
By Boundless
Boundless Economics
Economics
by Boundless
3 concepts

Market Power
Market power is a measure of a firm's economic strength that affects its pricing and supply decisions.

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.

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.