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Consumer Surplus
-Difference between maximum amounts a consumer is wishing to pay for a good and amount actually paid.
The stepladder demand curve is converted into a straight line demand curve by making the units of good smaller. 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
different types of production funtion and curve given by different economist
criticism of cournot model
what will be the possible concequences if a large scale like Toyota place its new product in Indian market without having forecast the demand for its product
identify three factors to criticize the theory of consumer behavior or utility theory
substitution and income effect on inferior good
Mixed Economy: This type of economic system combines the features of both the capitalist and socialist economic systems. The private sector is allowed to function on the principles
explain how the keynesian cross shows that the economy is susceptible to self-fulfilling prophesies, either positive or negative
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