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Producer surplus |
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Producer surplusThe difference between the revenue of producers and production cost, measured as the area above the supply (or marginal cost) curve and below price, out to the quantity supplied, and net of fixed cost and losses at low output. If input prices are constant, this is profit; if not, it includes gains to input suppliers, such as labor. Normally useful only as the change in producer surplus.Similar MatchesProducer support estimateProducer support estimateIntroduced by the OECD to quantify support in agriculture, it measures "transfers from consumers and taxpayers to agricultural producers as a result of measures [of] support," expressed as percentage of gross farm receipts. Also called producer subsidy equivalent. See also CSE. Producer subsidy equivalentProducer subsidy equivalent1. Producer support estimate. 2. This ought logically to measure the extent to which existing policies serve to subsidize producers, defined as the ad valorem subsidy that, if paid directly to producers per unit of production, would lead to the same level of output as existing policies. Big producerBig producerA successful broker who generates a large volume of commission. See Rainmaker. Change in producer surplusChange in producer surplusThe change in producer surplus due to a change in market conditions, usually a price change. For a price change, it is measured by the area to the left of the (upward sloping part of the) supply curve between the two prices, indicating a gain if price rises and a loss if it falls. Producer Price Index (PPI)Producer Price Index (PPI)Index measuring changes in wholesale prices, published by the US Bureau of Labor Statistics every month. Further SuggestionsProducer presenceTemporary producer movement |
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