1.What are the features of privatization?
2. How is producer surplus computed?
ANSWER 1.Accordingly, the main objectives of India’s development plans set were to:
a. Initiate rapid economic growth to raise the standard of living, reduce the widespread unemployment and poverty stalking the land;
b. Become self-reliant and set up a strong industrial base with emphasis on heavy and basic industries;
c. Achieve balanced regional development by establishing industries across the country;
d. Reduce inequalities of income and wealth;
e. Adopt a socialist pattern of development — based on equality and prevent exploitation of man by man.
To calculate the total consumer surplus achieved in the market, we would want to calculate the area of the shaded gray triangle. If you think back to geometry class, you will recall that the formula for the area of a triangle is ½ x base x height. In this case, the base of the triangle is the equilibrium quantity (QE).