Aggregate producer surplus in an industry can be measured along the market supply curve in the short run but not in the long run.

Question

Quizplus · Accepted Answer

Aggregate producer surplus in an industry can be measured along the market supply curve in both the short run and the long run. The market supply curve represents the marginal cost curves of individual producers in the industry, and so the area below the market price and above the supply curve represents the producer surplus in the industry. This can be calculated in both the short and long run.

Aggregate Producer Surplus in an Industry Can Be Measured Along