Aggregate producer surplus in an industry is measured along the market supply curve is and only if firm production technologies exhibit the quasilinearity property.

Question

Quizplus · Accepted Answer

Aggregate producer surplus can be measured without the assumption of quasilinearity by summing the individual producer surpluses along the supply curve. Therefore, it is not necessary for firm production technologies to exhibit the quasilinearity property.

Aggregate Producer Surplus in an Industry Is Measured Along the Market