explain the principle of Scarcity, Utility maximization, equilibrium, surplus and efficiency in microeconomics. ( a paragraph...

explain the principle of Scarcity, Utility maximization, equilibrium, surplus and efficiency in microeconomics. ( a paragraph for each)

Expert Solution

Principal of scarcity - it is the economic theory which states that a supply of goods which is limited in nature is coupled with the increased demand which results in mismatch between the desired supply and equilibrium of demand

Utility maximization- utility maximization states the problem which the consumer faces as in how to spend his money so as to increase his utility.In this the consumers and firms gets statisfied with the economic decision

Equilibrium- equlibrium us the situation in where there is no profit and loss that means the market forces like demand and supply remains balanced and economic variable do not change

Surplus- when on utilising an asset or resources it exceed the portion of utility to gain profits it is known as surplus. When a company have asset or resources more than what is required in.production is called surplus

Efficiency - it is the situation when nothing can improved without anything being hurt. When all the goods and resources are being utilised in best possible way and eliminating the waste then it is called efficiency

Rahul Sunny answered 2 years ago

How does utility maximization relate to the concept of trade-offs and scarcity?

Explain utility maximization rule with an example. Explain utility maximization rule with an example. please answer...

Explain utility maximization rule with an example. Explain utility maximization rule with an example. please answer my question as soon as possible

Consumer's Equilibrium by Diminishing Marginal Utility and Consumer's Surplus in Economy.

How does a consumer attain equilibrium by way of Law of Diminishing Marginal Utility? Elaborate. What is the meaning of consumer's surplus? How do we calculate it by the concept of Diminishing Utility? How do price changes affect consumer's surplus?

Based off of Gary Beckers model of utility maximization: Suppose initially a consumer is in equilibrium,...

Based off of Gary Beckers model of utility maximization: Suppose initially a consumer is in equilibrium, consuming a certain amount of two goods: good one is relatively time-intensive and the other relatively goods-intensive. Consider each change below separately. What does the model predict about the consumption of each good? Use the model to explain. An increase in income taxes. Marriage. Assume that prior to the marriage the two individuals lived separately. Children

In Microeconomics -explain how total surplus can be positive and how it can be negative

Explain the principle of Short Run and Long Run in microeconomics. (minimum a page )

graphically illustrate the derivation of the condition associated wirh utility maximization. EXPLAIN

True / False / Explain: Government subsidies increase economic efficiency since producer surplus and consumer surplus...

True / False / Explain: Government subsidies increase economic efficiency since producer surplus and consumer surplus increase.

1. Define consumer surplus and producer surplus. Explain why the equilibrium price and quantity maximizes the...

1. Define consumer surplus and producer surplus. Explain why the equilibrium price and quantity maximizes the sum of producer plus consumer surplus (the total surplus). 2. There are far more consumers of agricultural commodities than there are producers; but agricultural producers have consistently been able to get Congress to vote them subsidies at taxpayer expense and supply restrictions at the consumer's expense. How can the success of the agricultural lobby be explained by “the general rule of political economy”?

explain the advantages and disadvantage of using economic surplus as a proxy for social utility

Question