Content and teaching ideas for Intermediate Microeconomics
Friday, April 1, 2011
Social Surplus Basics
This is the standard analysis with one tiny exception. I wanted to argue that Social Surplus plus Deadweight Loss is a constant, which it is as long as output is less than the competitive output. So when output exceeds the competitive output, I labeled the incremental lost as Negative Social Surplus. I hope that's transparent enough.
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