3 ms·
>The difference between marginal cost and the price a buyer is the consumer surplus. You forgot a few words there. I assume it's supposed to say: >The differe
by Aerroon 4y ago
>The difference between marginal cost and the price a buyer is the consumer surplus.
You forgot a few words there. I assume it's supposed to say:
>The difference between marginal cost and the price a buyer is [willing to pay] is the consumer surplus.
Eg when the buyer is willing to pay $30 for a box, but the box costs $25 then that's a $5 consumer surplus.
Did I understand it right or did you mean something else?
- bryanlarsen 4y agoThanks for the accurate correction.