Legal Definition of misnomer. : the misnaming of a person in a legal document or proceeding (as in a complaint or indictment); specifically : the institution of proceedings against and service of process on the correct party using the incorrect name â compare idem sonans.
Definition of 'Producer Surplus' Definition: Producer surplus is defined as the difference between the amount the producer is willing to supply goods for and the actual amount received by him when he makes the trade. Producer surplus is a measure of producer welfare. It is shown graphically as the area above the supply curve and below the equilibrium price. Here the producer surplus is shown in gray. As the price increases, the incentive for producing more goods increases, thereby increasing the producer surplus. Description: A producer always tries to increase his producer surplus by trying to sell more and more at higher prices.
Consumer surplus occurs if the buyer is able to purchase the product at a lower cost than this limit, which is seen as a gain. An example of consumer surplus in business and the global economy is oil prices: as the price per barrel drops below what the consumer is used to paying, the consumer profits with a surplus.Producer surplus occurs when goods are sold at a higher price than the lowest price the producer was willing to sell for.onsumer surplus occurs when the price for a product or service is lower than the highest price the consumer would pay. For example, think of it like an auction: a buyer walks into an auction with a set price limit he or she will not exceed.