|Mause I 152
Allocation/Mankiw/Taylor: any balanced allocation in a perfect market is welfare maximizing. (1)
Def Welfare: "social surplus", the sum of consumer and producer surpluses.
Def consumer surplus: the amount of money that households "save" that would have been ready to pay a higher price for the goods than the equilibrium market price.
Def producer surplus: the (short-term) profit of enterprises, as the surplus of total proceeds over the costs below the marginal costs up to the equilibrium quantity.
1. Gregory N. Mankiw, Mark P. Taylor, Grundzüge der Volkswirtschaftslehre, Stuttgart 2016, p. 249_____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. The note [Author1]Vs[Author2] or [Author]Vs[term] is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition.
N. Gregory Mankiw
Mark P. Taylor
Grundzüge der Volkswirtschaftslehre Stuttgart 2016
Politik und Wirtschaft: Ein integratives Kompendium Wiesbaden 2018