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Intermediate goods or services used in production can be either changed in form (e.g. bulk sugar) or completely used up (e.g. electric power). Intermediate consumption (unlike fixed assets) is not normally classified in national accounts by type of good or service, because the accounts will show net output by sector of activity.
The consumer surplus (individual or aggregated) is the area under the (individual or aggregated) demand curve and above a horizontal line at the actual price (in the aggregated case, the equilibrium price). If the demand curve is a straight line, the consumer surplus is the area of a triangle:
Price-consumption curves are constructed by taking the intersection points between a series of indifference curves and their corresponding budget lines as the price of one of the two goods changes. [1] Price-consumption curves are used to connect concepts of utility, indifference curves, and budget lines to supply-demand models. [1]
For the consumer, that point comes where marginal utility of a good, net of price, reaches zero, leaving no net gain from further consumption increases. Analogously, the producer compares marginal revenue (identical to price for the perfect competitor) against the marginal cost of a good, with marginal profit the difference.
In economics, an excess supply, economic surplus [1] market surplus or briefly supply is a situation in which the quantity of a good or service supplied is more than the quantity demanded, [2] and the price is above the equilibrium level determined by supply and demand. That is, the quantity of the product that producers wish to sell exceeds ...
Surplus line providers are insurance companies specializing in underwriting non-standard risks and financial hazards that traditional insurance companies are unwilling to take on. Unlike ...
The total surplus of perfect competition market is the highest. And the total surplus of imperfect competition market is lower. In the monopoly market, if the monopoly firm can adopt first-level price discrimination, the consumer surplus is zero and the monopoly firm obtains all the benefits in the market. [15]
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