How to calculate social welfare?
Surplus measurement social This method consists of calculate the extra social from cost and demand functions. The extra social is defined as the sum of consumer surplus and producer surplus.
L’economy vs’is the science of choices, which demonstrates that man has unlimited needs that he can only satisfy with limited resources. It is therefore necessary to make choice purchases.
By increasing this production, the company generates other economies of scale (generally stronger than the previous ones). Thus, over time, this phenomenon makes the company grow and increase its market share, which can even, in some cases, lead to monopoly situations.
Indeed, an economy of scale relates the unit production cost to the quantities produced by the company: produce more to pay less in a way.
These savings only benefit the company that has taken the right measures and can enable it to gain market share.
The two types of economies of scale 1 Internal economies of scale that come from actions carried out directly by the company: better distribution… 2 External economies of scale (which can also be returns to scale) are for their part trained… More …