Lectures in Microeconomics-Charles W. Upton Consumer and Producer Surplus

Competitive Diversity How can cost functions differ? Economic and Accounting Profits Taxing a Competitive Industry Consumer and Producer Surplus

D Q* S P*

Consumer and Producer Surplus D Q* S P* CS

Consumer and Producer Surplus D Q* S P* CS PS

Consumer and Producer Surplus D Q* S P* CS PS Consumer Surplus measure the net benefits to consumers; Producer Surplus measure the net benefits (aka profits) to producers.

Consumer and Producer Surplus A Simple Application D Q* S P* CS PS P max P min

Consumer and Producer Surplus A Simple Application D Q* S P* CS PS P max P min

Consumer and Producer Surplus End ©2006 Charles W. Upton