Consumer surplus is a term used in economics that can have a significant impact on your business. When the cost of producing a product is more than what people are willing to pay, you have a consumer ...

Consumer surplus and producer surplus figures are derived from demand and supply curve analysis. The demand curve shows how many quantities of a product consumers are willing to purchase at different ...

Budget surpluses occur when income exceeds expenses in any budget. Economic surplus arises when supply outstrips demand, lowering prices. Producer surplus increases with cost reductions from ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

1. Since long-run economic profits for a competitive firm are always zero, it will never pay acompetitive firm to adopt a cost reducing innovation. 2. If a lump sum tax is placed on firms in a ...

1. Textbook problems # 2, 5, 7, 8 from Chapter 8. Textbook problems # 9, 10, 11 from Chapter 9. 2. True/ False Questions. 1. Since long-run economic profits for a competitive firm are always zero, it ...