The Law Dictionary

Featuring Black’s Law Dictionary Free Online Legal Dictionary 2nd Ed.

What is PRODUCER SURPLUS

In economic terms, it is the difference between the lowest amount that the producer is willing to accept for a good and the present amount at which he sells the goods. The benefit for the producer is higher is this difference is higher. On the standard demand and supply graph, the producer surplus is located between the supply curve and the below the point of intersection of both curves.

Disclaimer

Nothing implied or stated on this page should be construed to be legal, tax, or professional advice. The Law Dictionary is not a law firm and this page should not be interpreted as creating an attorney-client or legal adviser relationship. For questions regarding your specific situation, please consult a qualified attorney.