Consumer surplus, Microeconomics

Assignment Help:

Consumer Surplus 

-Difference between maximum amounts a consumer is wishing to pay for a good and amount actually paid.

1192_consumer surplus.png

The stepladder demand curve is converted into a straight line demand curve by making the units of good smaller.
1573_consumer surplus1.png

Combining consumer surplus with aggregate profits which producers obtain we can evaluate:

  1) Benefits and Costs of different market structures

  2) Public policies which changes the behavior of consumers and firms 


Related Discussions:- Consumer surplus

Economic profit and economic loss, Economic profit and Economic loss: ...

Economic profit and Economic loss: Economic profit is the excess if total revenue over total cost when the latter includes both explicit and implicit costs. It is the type o

Frictional and cyclical unemployment, Frictional and Cyclical Unemployment:...

Frictional and Cyclical Unemployment: Frictional Unemployment: It refers to unemployment caused by changes in individual labour markets. This is the type of unemploymen

PRODUCTION, WHAT IS A PRODUCTION FUNCTION SCHEDULE?

WHAT IS A PRODUCTION FUNCTION SCHEDULE?

What main features are found in oligopolies, What main features are found i...

What main features are found in oligopolies? Assumptions of oligopoly Four or five firm concentration ratio Frequently there are benefits of scale to be had Merg

Demand, factors influencing the conditions of demand for a given product

factors influencing the conditions of demand for a given product

Production , Suppose that a firm’s production function is given by Q=30L-3L...

Suppose that a firm’s production function is given by Q=30L-3L2, where L is labor input and Q is the output. a) Derive and draw the firm’s demand for labor while the firm’s produ

Revenues, Ask qdescribe average and marginal revenue under imperfect compet...

Ask qdescribe average and marginal revenue under imperfect competitionuestion

Microeconomic monopoly, A monopolist faces the following demand function fo...

A monopolist faces the following demand function for its product: Q = 45 - 5P The fixed costs of the monopolist are $12 and the variable costs are $5 per unit. a) What are the

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd