The total economic surplus is the sum of the consumer and producer surplus, which refers to the benefit received by producers from the market price exceeding the prices that consumers are willing to pay. Total Economic Surplus =Consumer Surplus+Producer Surplus The simplest formula for calculating t...
What is the formula for calculating the total Revenue? Total Revenue: In economics, the term total revenue is associated with the total income that a firm can earn by selling their output in the market at a given or specified price level. Usually, it is denoted by TR. ...
What is the formula for calculating GDP when given wages, rent, government spending, consumer spending, private (I.e. business investment), and net exports? Gross Domestic Product The gross domestic product is a measure of the ...
Marginal benefit and marginal cost are both measures of how the cost of product or service can change. But while marginal benefit will look at how this impacts the customer, marginal cost relates to the producer. When a company is calculating the details of manufacturing, marketing, and pricing...
8. Comparison may be made by calculating P/V ratio for- (a) Line of product (b) Sales area (c) Method of sales (d) Individual factories; and (e) Separate companies. Marginal Cost – Profit Volume Graph (With Procedure and Figure) ...