# Questions tagged [surplus]

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### How can I compare surplus in monopolistic competition to surplus in monopoly?

Is there any way to compare the total surplus and consumer/producer surplus in monopolistic competition with that of perfect competition or monopoly? All I can come up with is the idea that deadweight ...
• 25
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### Consumer Surplus [closed]

Is there a case where the consumer surplus being negative does not mean that the producer surplus increases? Is it true that as consumer surplus increases, producer surplus decreases and vice versa?
• 101
1 vote
40 views

### Does cornering a market has any "bad" economic consequence?

(Not sure If this question is suited for here or it should be asked at money or law SE) As the title reads, Does any specific economic inefficiency arises when someone corners or tries to corner a ...
• 113
183 views

### Derivation of Surplus in Paul Romer's paper on "mathiness"

In this paper by P. Romer https://pubs.aeaweb.org/doi/pdfplus/10.1257/aer.p20151066 I'm wondering the Surplus $S$ was derived. By using the given condition I found that q_0=m^{-\tfrac{1}{a+b}}N^{-\...
129 views

### Deadweight Loss Due to Taxes Represented on a Graph of the Market?

Let's say a market is operating at equilibrium, with MSB=MSC, and a tax is imposed on the market. This would shift the supply curve to the left and cause a deadweight loss represented by the triangle ...
255 views

### How can people save in a equilibrium economy?

Two people on a desert island: John produces 100kg potatoes and sells them to Paul for \$100. Paul catches 100kg fish and sells it to John for \$100. GDP is \$200\$, right? Next year, they improve ...
• 279
1 vote
51 views

### Why is the Total Current Account Balance of World positive and does it mean that the world has a net Trade Surplus?

I wondered if it was possible for all countries to have a Trade Surplus - which turns out to be impossible because the total value of imports in the world must be equal to the total value of exports ...
1 vote
47 views

### Terminal and annual surplus distribution in participating life insurance

I consider a participating life insurance contract which is fair if $P_0 = e^{-rT} \mathbb{E}^{\mathbb{Q}}\left[ L(T) \right)$ ($\mathbb{Q}$ denotes the risk-neutral measure), where $P_0$ is the ...
1 vote
66 views

### How to find the market equilibrium by surplus maximisation when there is a consumer subside?

Let's assume a market with linear demand and supply functions, let's say $Q_d = 20 - 4p$ and $Q_s = -4 +8p$ respectively. We can easily find the market equilibrium by either setting $Q_d = Q_s$ (or \$...
• 277
155 views

### When to prefer maximisation of surplus and when instead to prefer minimising differences in price and q to find market equilibrium?

Two alternative approaches to compute a market equilibrium (in static analysis) are either to minimize the differences (either using abs() or a quadratic diff) between supply-demand quantities and ...
• 277
139 views

### Difference between automated and living labor pertaining to surplus value

In the Marxist concept, animals, machines and slaves are incapable of producing surplus value. They only produce as much as they have to in order to function, and no more. Doesn't this also describe ...
4k views

### Is scalping tickets harmful?

IMHO, scalping tickets is no different from legitimate arbitrage unless manipulative. Iirc, arbitrage increases surplus and hindering scalping is setting a price ceiling which leads to deadweight ...
• 388
5k views

### What does Yanis Varoufakis mean by "surplus recycling mechanism"?

Yanis Varoufakis, the current finance minister of Greece, talks about a "surplus recycling mechanism", a term he coined and uses to describe (as I understand it) a relief valve for economies running a ...
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