Producer Surplus Calculator

Calculate Producer Surplus





Formula

To calculate the Producer Surplus (PS):

\[ PS = (MP - M) \times QS \]

Where:

What is Producer Surplus?

Producer Surplus is the amount of extra capital a producer earns from an increase in market price due to an increase in demand. It is the difference between what producers are willing to accept for a good or service versus what they actually receive.

Example Calculation

Let's assume the following values:

Using the formula:

\[ PS = (50 - 30) \times 100 = 20 \times 100 = 2000 \text{ dollars} \]

The Producer Surplus is $2000.