Developed countries have a wide variety of resources and exploit these to the fullest. Advanced technology allow full use of resources. These countries reach a level of production which satisfies their domestic consumption and a surplus to be exported to other countries.
Surplus production occurs when too much of a good is produced. Supply then outweighs the demand.
total production - self consumption = market surplus
Producer surplus is calculated by subtracting the minimum price a producer is willing to accept for a good or service from the actual price they receive. Factors that determine producer surplus include the cost of production, market demand, and the level of competition in the market.
two levels of production are: 1-subsistance production2-surplus production
the main difference between surplus and subsistance production are:-subsistance production you only produce or generate enough goods or services for your coutry an with surplusproduction you have sufficient amount of goods for your country an for trading
Surplus production occurs when too much of a good is produced. Supply then outweighs the demand.
total production - self consumption = market surplus
Producer surplus is calculated by subtracting the minimum price a producer is willing to accept for a good or service from the actual price they receive. Factors that determine producer surplus include the cost of production, market demand, and the level of competition in the market.
In agriculture sector the production of crop yield that is just sufficient for human consumption has no surplus for free market or as buffer stock. With technological application as inputs for agricultural production the crop yield is beyond the self sufficiency level. Such yield is called surplus food. In common usage , any production of food in excess of the number of people for consumption of the produced food is termed as surplus food.
two levels of production are: 1-subsistance production2-surplus production
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the main difference between surplus and subsistance production are:-subsistance production you only produce or generate enough goods or services for your coutry an with surplusproduction you have sufficient amount of goods for your country an for trading
To determine producer surplus from a table, subtract the cost of production from the price at which the product is sold. The difference represents the producer surplus, which is the benefit that producers receive from selling their goods at a price higher than their production costs.
Production surplus is important because it indicates the efficiency and productivity of an economy, reflecting the difference between what producers are willing to supply at a given price and the actual market price. This surplus allows producers to reinvest in their operations, fostering growth and innovation. Additionally, it benefits consumers by providing them with lower prices and a greater variety of goods and services. Overall, production surplus contributes to economic stability and development.
economic specializtion
Economic specialization
price below the equilibrium level