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

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Presentation on theme: "Lectures in Microeconomics-Charles W. Upton Consumer and Producer Surplus."— Presentation transcript:

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

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

3 D Q* S P*

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

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

6 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.

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

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

9 Consumer and Producer Surplus End ©2006 Charles W. Upton


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