Equimarginal Principle

The equimarginal principle is an important idea in the economic subfield of managerial economics. It is otherwise known as the “equal marginal principle” or the “principle of maximum satisfaction.” The equimarginal principle states that consumers choose combinations of various goods in order to achieve maximum total utility. In other words,…
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The 10 Best URL Shortener Services

An URL Shortener is a technique in which an URL may be made substantially shorter in length and still direct to the required page. An URL Shortener achieves this using a redirect on a domain name that is short. The short URL links to the web page that has a long URL. If you're looking to create your URL shortener service, read this guide. Most …
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Supply Side Policies

Supply-side economics involves policies aimed at increasing aggregate supply (AS), a shift from left to right. They are based on the belief that higher rates of production will lead to higher rates of economic growth. They are aimed at enhancing the productive capacities of an economy by fostering what they view as a better business climate via…
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Subsidies

Subsidies are defined as a form of support given to producers of a product that helps to reduce the cost of production. This has the intended effect of increasing production and consumption of that product. Goods that governments want to increase the use of are subsidized; these include important services and institutions like education and…
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Consumer Surplus

Consumer surplus is the area under the demand curve (see the graph below) that represents the difference between what a consumer is willing and able to pay for a product, and what the consumer actually ends up paying. Consumer surplus is positive when the price the consumer is willing to pay is more than the market price. How to Calculate…
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Producer Surplus

The producer surplus is the area under the supply curve (see the graph below) that represents the difference between what a producer is willing and able to accept for selling a product, on the one hand, and what the producer can actually sell it for, on the other hand. That difference is the amount that the producer receives as a result of selling…
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