Surplus is the remainder of the production activity, right?
Surplus is the rest of the goods from production activities, really? The field of economics has many terms that are rarely known to the general public. Of course, those who are not in this field will feel confused and strange with the existing terms, whether they hear or read these terms by accident.
Usually these terms are familiar and commonly used by people who work in the field of economics and business. There is one term that is often used on several occasions in the business world, namely surplus.
Surpluses are often discussed because they have a large enough influence in the economic field. Not infrequently, the surplus often appears in several charts in the economic field.
Surplus itself is divided into two, namely producer surplus and consumer surplus. These two terms are also commonly heard and used by people involved in the business or economic world.
Definition of Surplus
Judging from the 5th edition of the KBBI, according to him, a surplus is an amount that exceeds the usual yield; excess and waste.
Therefore, surplus can be interpreted as excess or residual goods from a work activity produced by a company or entrepreneur.
It can also be interpreted as a value that can exceed a predetermined value by the company. If it has passed the specified value, it can be said that it is a surplus.
Not only that, the surplus can also be intended as an additional income obtained from the price set by the sale of these goods.
In order to understand more about surplus, it is also good to know about the types of surplus that have been mentioned previously, namely producer surplus and consumer surplus.
Producer Surplus
Producer surplus is the result of business or additional income obtained by the producer of goods from prices that have previously been determined by the company.
Usually the price of the item is higher than the actual price. Inventories of goods needed by consumers provide an idea for producers to sell goods at higher prices.
Surplus is one way that many manufacturers do to get a lot of profit.
Producer surplus can be said as a measure of the profit earned by the company in selling its goods.
This is because the price of goods that have been sold by the producer is then reduced by the costs incurred during production, which is also known as producer surplus.
Manufacturers will usually sell goods above the minimum price that has been determined in sales to consumers.
Consumer Surplus
Consumer surplus is an additional satisfaction or utility obtained by buyers from paying the price of a good that has been offered by producers at a lower price.
Surplus is the amount that consumers are able to pay to producers for goods that have been purchased, this is done in order to get the use value of the goods.
In consumer surplus, there is usually a difference between the amount of costs that consumers incur to buy goods and the maximum amount of costs that consumers have to pay for them.
Consumer surplus is more focused on satisfaction with additional prices obtained by consumers.
The conclusion that can be drawn from the explanation above is that it is true that the surplus is the remaining goods from the production activities carried out by the company to obtain additional income.
Profit is not only felt by producers alone, but consumers can also feel it. This method is arguably commonplace done by many large companies.
Hopefully this brief explanation can help add references to surplus and benefit from it.
