A morpheme may consist of a word, such as hand, or a meaningful piece of a word, such as the âed of looked, that cannot be divided into smaller meaningful parts. Another way in which morphemes have been defined is as a pairing between sound and meaning. We have purposely chosen not to use this definition.
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.
Production is the creation of goods and services by combining various elements in the production process. For example, the farmer grows a wheat crop by combining his labor with the land, seed, fertilizer, and machinery. Consumption is the destruction of goods and services to satisfy the wants and needs of people. A person who is hungry eats a meal, and the food ceases to exist as food. Goods are tangible outputs of the production process -- the good has a physical existence.