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 1 year ago

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

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

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

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