单词 | producer's surplus |
释义 | producer's surplus The excess of total sales revenue going to producers over the area under the supply curve for a good. If the supply curve is perfectly elastic there is no producer's surplus, but if the supply curve is upward-sloping, those productive resources which would have stayed in the industry at a lower price earn quasi-rents. The horizontal axis shows quantity produced; the vertical axis shows costs and price. OA is quantity produced; BDE is marginal cost curve (MC); and OP is price. OBDA is total variable cost, OPDA is total revenue (= price * quantity), and BPD is producer's surplus if there are no overhead costs. If there are overhead costs, producer's surplus is BPD minus overheads. |
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