Define Producer Surplus

question 58

Essay

Define producer surplus.Using a graph,illustrate producer surplus for a firm with an avoidable fixed cost.Why is it convenient to focus on producer surplus when analyzing policy changes?

---

Definitions:

Legality

The state or quality of being in accordance with the law.

Statutory Law

Law that is written and enacted by a legislative body, distinguishing it from common law or judge-made law.

Valid Contract

An agreement that meets all legal requirements and is enforceable by law.

Contractual Capacity

The legal ability of a person to enter into a contract.