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Producer surplus is the economic return above the firm's cost of production. Suppose you were an international fruit buyer and you are trying to
Producer surplus is the economic return above the firm's cost of production. Suppose you were an international fruit buyer and you are trying to figure what your surplus would be if you buy Bananas and Cherries at the given marginal cost. Graph the producer surplus line (green) to represent your surplus as if you were to sell your products at the given price. 7 6 5 3 2 1 0 $2 Bananas $3 premium $4 Cherries $6 premium Bananas cherries -Marginal $ -Product $ Producer Surplus
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