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Describe How to Create a Solver Model

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Essay

Describe how to create a Solver model. Please include these key terms in your descriptions: Solver model, objective cell, variable cells, and constraints.


Definitions:

Consumer Surplus

The bifurcation between what a consumer wishes to pay for a service or good, and what ends up being spent.

Producer Surplus

The difference between what producers are willing to sell a good for and the actual market price of the good.

Deadweight Loss

Deadweight loss refers to the loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable, often due to market distortion such as taxes or subsidies.

Marginal Revenue

The additional income earned from selling one more unit of a good or service.

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