Welfare Analysis (Part 2): Producer Surplus

The producer price (Pp) represents the per-unit revenue (i.e., per-unit benefit) to the producer. As long as the Pp exceeds the marginal cost (MC) of supplying a good, suppliers will receive surplus (i.e., profit) for supplying that good. This video is made for 1st year college students or AP/IB Economics students. It focuses on foundational economic concepts.