Exhibit 3A-2 Comparison of Market Efficiency and Deadweight Loss
As shown in Exhibit 3A-2, if the market is in equilibrium, then total surplus is represented by:
Definitions:
Incremental Sales
The additional sales generated from a specific marketing campaign, sales activity, or product change, beyond regular expected sales.
Straight-Line Depreciation
A technique for distributing the expense of a physical asset evenly across its lifespan.
After-Tax Discount Rate
After-tax discount rate is the rate used to determine the present value of future cash flows after considering the effects of taxes.
Working Capital
The difference between a company's current assets and current liabilities, indicating its operational liquidity.
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