<p>By social welfare your professor probably means total <a href="https://en.wikipedia.org/wiki/Economic_surplus" rel="nofollow noreferrer">economic surplus</a> which is the sum of consumer's surplus and producer's surplus.</p>

CC BY-SA 3.0
2017-10-24T14:51:27.170Z
You can enlarge your answer by providing a mathematical definition for consumer surplus (i.e. the reservation price minus the paid price) and producer surplus (i.e. the profits).
one_teach_wonder
CC BY-SA 3.0
2017-10-24T16:12:20.307Z
@one_teach_wonder Profits are not the same as producers surplus (the difference is the fixed cost). But yes, a more detailed answer would be nice, if you care to make one I would be happy to upvote it.
Giskard
CC BY-SA 3.0
2017-10-24T14:19:47.333Z
2017-10-24T14:19:47.333Z
Giskard
<p>I'm studying problem that requires me to calculate social welfare in a monopoly setting.</p>

<p>But I dont know what social welfare is, and I can't find it in my book or by googling. What am I asked to compute?</p>

<microeconomics><monopoly>
What is the definition of social welfare in monopoly?
Olba12
# What is the definition of social welfare in monopoly?

(Asked by: username_0 on 2017-10-24)

I'm studying problem that requires me to calculate social welfare in a monopoly setting.

But I dont know what social welfare is, and I can't find it in my book or by googling. What am I asked to compute?

**Tags:** microeconomics, monopoly


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## 1 answers

### Answer by username_1 on 2017-10-24. Score: 2

By social welfare your professor probably means total [economic surplus](https://en.wikipedia.org/wiki/Economic_surplus) which is the sum of consumer's surplus and producer's surplus.

> **Comments:**
> **username_2**: You can enlarge your answer by providing a mathematical definition for consumer surplus (i.e. the reservation price minus the paid price) and producer surplus (i.e. the profits).  
> **username_1**: @username_2 Profits are not the same as producers surplus (the difference is the fixed cost). But yes, a more detailed answer would be nice, if you care to make one I would be happy to upvote it.  

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