Answer to Question #72002 in Microeconomics for achraf salmane

Question #72002
how producer surplus is made in a long run competitive market even if the producer is not making any profit ?
1
Expert's answer
2017-12-20T10:53:06-0500
Producer surplus is an economic measure of the difference between the amount a producer of a good receives and the minimum amount the producer is willing to accept for the good.
So, even the producer faces losses, he has producer surplus, because the market price is above the minimal possible price for this producer.
Reference:
https://www.investopedia.com/terms/p/producer_surplus.asp#ixzz51i1Yyd2C

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

LATEST TUTORIALS
APPROVED BY CLIENTS