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?
Economics Stack Exchange is a question and answer site for those who study, teach, research and apply economics and econometrics. It only takes a minute to sign up.
Sign up to join this communityI'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?
By social welfare your professor probably means total economic surplus which is the sum of consumer's surplus and producer's surplus.