An outline is a way of formally arranging and developing your ideas. Though formal in form, there is a great amount of flexibility in how you might approach making an outline. It can be made either before youâve written a single word on the topic or after a draft or two.
Graph 6. When a market does not produce at its efficient point there is a deadweight loss to society. The yellow triangle represents the lost consumer surplus and the red triangle represents the lost producer surplus when the market operates at the monopolistic output instead of the competitive output.The lost consumer surplus plus the lost producer surplus is the total deadweight loss to society. Graph 7.roducer surplus is defined by the area above the supply curve, below the price, and left of the quantity sold. Graph 2. The yellow triangle in the above graph represents consumer surplus. Consumer surplus exists when the price paid by a consumer is less than what the consumer would be willing to purchase the good for.
Total Costs: $400. Total costs correspond to the red area in Figure 3.6i. This area is made up of a triangle with a base of 300 and height of $3. The area is (300 x $3)/2. Total Market Surplus: $900. Total market surplus can be calculated as total benefits â total costs. Alternatively, we can calculate the area between our marginal benefit and marginal cost, constrained by quantity. This is the equivalent of finding the difference between the marginal benefits and the marginal costs at each level of production.