Yet, these jobs represent an additional cost of production and the benefit-cost analysis conclusion is as before. Counting abatement costs c + f + h as beneficial jobs without recognizing the offsetting loss of producer surplus (i.e., profit) to the polluting firm is to confuse costs and benefits.
If at our website you can not find any essay you need for your study, you can order a paper on any topic with us.
Our company employs only qualified writers that are Master's and PhD holders.
Order custom written essay
Research papers are written by professional writers
Requirements are always met
Posibility to control the working process of your paper
A chance of becoming the best student in your class.
Consumers and producers enjoy the gains from this equilibrium. The consumer surplus is the difference between willingness to pay (height of the demand curve) and price: area a + b + c + d. You enjoy consumer surplus every time you buy something and get a "good deal."
The producer surplus is the difference between the revenue earned on each unit (P1) and its marginal cost of production: area f + g + h (note that f includes the tiny triangle below P1 and above the MSC curve)...