The Marshallian economic surplus
framework based on partial equilibrium analysis constitutes the theoretical basis for the analysis of the effect of price distortions in Pakistan.
It leads to the suggestion that there may be an economic surplus
of education in the country, where only 30 percent of the population is literate, implying that the education sector in the country is overextended.
The early classical (English) political economists shifted the analytical focus away from international trade and agriculture as the source of the economic surplus
to the production of manufactured goods, and thus political economy came to pertain to the provision of goods and services to support society and provide the state with revenue to conduct its activities, i.
New alternatives are needed to give people more voice, de-concentrate assets and democratize the use of the economic surplus
Some environmental changes directly affect marketed goods and services, and the value of these effects can be evaluated by assessing the net change in economic surplus
in the affected markets.
It must be noted that the computation of the economic surplus
of changes in technology level due to research benefits as a parallel shift of the supply function is provided by Alston.
Therefore, under a CAF strategy, the country will produce the largest possible economic surplus
and will have the highest returns on investment so that capital will be accumulated faster, and in this fashion the country will change its endowment structure from relatively abundant in labour to relatively abundant in capital.
Thus there is a loss in the total economic surplus
and firms also experience efficiency losses due to under utilization of their capacity.
But, as with any economic surplus
, the price point has been savagely driven down along with quality.
The presence of variations and the continuous disequilibrium between price, cost, and value actually create an economic surplus
that attracts participants in a free market system.
The numerical example in Section III illustrates why LMC exceeds LAC in the case of natural monopoly and illustrates that economic surplus
is greater with LMC rates compared to either SMC or EC rates.
To assess the economic surplus
offered by electronic commerce, for example, the utility of an expanded catalogue, search tools and intermediaries that facilitate customisation (at least apparently) of the offering must be taken into account, as shown by Brynjolfsson.