Share This Article:

Economic Definition of producer surplus. Defined.

Offline Version: PDF

Term producer surplus Definition: The revenue that producers obtain from selling a good over and above the opportunity cost of production. This is the difference between the minimum supply price that sellers would be willing to accept and the price that is actually received. For most producers, under most circumstances, the supply price is less than the price received. Even competitive markets overflowing with efficiency generate an ample amount of producer surplus.


« Producer Price Index | product »


Alphabetical Reference to Over 2,000 Economic Terms