USA HISTORY

Detailed explanation-1: -Key Takeaways. Oversupply is a situation where there is more product on the market than consumers want to buy. In commodities, an oversupply is a period when over production of a commodity pushes the price for that commodity down to a level where the producers are losing money.

Detailed explanation-2: -Production is the process of making or manufacturing goods and products from raw materials or components. In other words, production takes inputs and uses them to create an output which is fit for consumption – a good or product which has value to an end-user or customer.

Detailed explanation-3: -Producer surplus is the total amount that a producer benefits from producing and selling a quantity of a good at the market price. The total revenue that a producer receives from selling their goods minus the marginal cost of production equals the producer surplus.

Detailed explanation-4: -Businesses providing goods can choose from three different types of production process. These are job production, batch production and flow production .