Alfred Marshall in his famous work ‘Principles of Economics’ explained the concept of producer surplus. This concept measures the benefit that sellers receive from participating in the market. Therefore, producer surplus measures the welfare of the producer. Producer surplus is the benefit that producers receive over his cost of providing goods against what he is …
Arsène Jules Étienne Juvenel Dupuit introduced the concept of consumer’s surplus in 1844. It was further developed by Alfred Marshall in his famous book “Principles of Economics” in 1890. Prof. Boulding named it ‘Buyer’s Surplus”. In general, consumer surplus is realized in highly useful but relatively cheap commodities. Consumer surplus is defined as the difference …
Macroeconomics is the branch of economics that deals with economic activity on a large scale. It means macroeconomics is the study of the whole economy in terms of the total amount of goods and services produced, total income earned, total consumption, the investment made and stock of capital, the level of employment of productive resources, …
