Producer Surplus
The difference between the price a seller actually receives and the minimum price they would have accepted.
What is Producer Surplus?
Producer surplus is the economic gain sellers receive when the market price exceeds their minimum acceptable price — the price at which they were just willing to sell. Graphically, it is the area above the supply curve and below the market price. Together with consumer surplus, it forms total economic surplus, which measures the overall gains from trade in a market. When markets are competitive and free from distortions, the sum of producer and consumer surplus is maximized, a condition known as economic efficiency. Government interventions such as price ceilings or taxes reduce producer surplus.
Example
A farmer willing to sell wheat at $4 per bushel but who receives the market price of $6 earns a producer surplus of $2 per bushel. If the farmer sells 10,000 bushels, total producer surplus is $20,000 — money earned above the farmer's minimum acceptable return. Economists use aggregate producer surplus to measure how much sellers gain from participating in a given market.
Source: Investopedia — Producer Surplus