Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Market demand and consumers surplus
Suppose that the market price of a cup of coffee is K£4 but the consumer was willing to pay £9 for the first unit, £8 for the second, £7 for the third, £6 for the fourth, £5 for the fifth and £4 for the sixth.
However, he pays the market price for all the six cups. The consumer thus earns a surplus on the first five units consumed i.e.
A measure of the difference between the value that consumers place on their total consumption of some commodity and the amount they actually pay for it.
For continuous demand curves, consumer's surplus can be measured by the area under the demand curve and above the price.
NB: The shaded area represents utility which the consumers received but did not pay for i.e. consumer surplus.
Mathematically it can be calculated as follows:
£5 + £4 + £3 + £2 + £1 = £15
*Weaknesses of cardinalist approach
how much output should a firm produce? 80$ per unit C(Q)=40+8Q+2Qsquared
prepare a break-even analysis to determine volume required to cover costs with and without a specified profit target and price.
Explain the short-run production function with one variable input with the help of assumed figures. Clearly indicate the three stages of physical product, using table and graphs.
plot the demand schedule and draw the demand curve for the data given for marijuana in the case above
Q. What is Production and Cost Function? Production functions and cost functions are the keystones of managerial and business economics. A production function is a mathematical
Q. Discovery of new technical know-how? Growth of Technical Know-how: Expansion of an industry may result in the discovery of new technical know-how. As a result of this firm
Equilibrium National Income in a Frugal Economy Saving and investment are examples of two categories of expenditure called withdrawals and injections. A WITHDRAWAL is any inc
INSTRUMENTS OF CREDIT CONTROL The central bank employs several instruments to control aggregate credit in the country. While some instruments like the open market operations mi
Factors influencing demand for a product These are broadly divided into factors determining household demand and factors affecting market demand . Factors affecting hou
how equilibrium output can be find in williamson model
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd