MATHEMATICS II - Deneme Sınavı - 1

Consumer surplus is derived whenever the price a consumer actually pays is less than they are prepared to pay. A demand curve indicates what price consumers are prepared to pay for a hypothetical quantity of a good, based on their expectation of private benefit.

We can find the total cost function C(x) by integrating the marginal cost function with respect to x.

In a certain market, if a producer who is willing to sell a product at a certain price may sell the product higher than the price he asks, then he has increased his revenue. This extra amount gained is called the producer surplus (PS). In other words, the producer surplus is the difference of the price the producer is willing to sell and the actual price he sells his product.