Authors: Andrew Nassif
Economic surplus could mean up to three things: excess of supplies, an extent in which people’s assets exceeds their liability, profits remaining after a company subtracts their major expenses. Another word for Economics surplus is Marshallian Surplus, named after the great economics himself Alfred Marshall. The two types of surplus are consumer and producer surplus. Consumer surplus is the monetary gain of an item purchased by the consumer. Producer’s surplus is the producer/company’s benefit of bringing an item to the market for a certain price. Paul Baran, introduced Marshall’s concept as having to do with supply and demand. Meaning when the producer’s supplies meet the consumer’s demand then it is a mutual economic surplus.
Comments: 4 Pages. A short summary on economic surplus
[v1] 2013-03-07 11:27:20
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