Producer Surplus

In this lesson, Professor Angela Doku explains the concept of producer surplus, which represents the difference between the price a producer is willing to sell a good for and the price they actually receive in the market. She discusses how producers make decisions based on marginal revenue and marginal costs, leading to benefits that exceed the price at which goods are sold. The lesson emphasizes the role of producer surplus in evaluating new policies, as policymakers use it to measure the impact of proposed legislation on producer benefits in different markets.