Tag: Externalities

• Microeconomics – Consumers, Producers & Efficiency of Markets

  

  WELFARE ECONOMICS Welfare economics is the study of how the allocation of resources affects economic well-being. Participation in market leads to buyers receiving benefit consumer surplus and sellers receiving benefit producer surplus. Equilibrium maximises total welfare. CONSUMER SURPLUS Willingness to pay measures the buyers’ value of a good or service…

  November 15, 2016