<p>The demand curve represent the marginal value that consumers put on a good. That is, the marginal value for the <span class="math-container">$Q$</span>-th unit of the good is the height of the demand curve at <span class="math-container">$Q$</span>. </p>

<p>The total value from consuming <span class="math-container">$Q$</span> units of the good is therefore the area under the demand curve from <span class="math-container">$0$</span> to <span class="math-container">$Q$</span>. </p>

<p>The net value (i.e. net of cost) from consuming <span class="math-container">$Q$</span> units of the good is consumer surplus, which equals total value (defined in the previous paragraph) minus total cost (represented by the sum of the two shaded rectangles in your graph). </p>

CC BY-SA 4.0
2018-12-07T09:53:39.457Z
Thanks for clearing thing up a bit. But what do you mean when writing *net value (i.e. net of cost)*? Consumer net value is equal to consumer cost? I dont' get that.
coobit
CC BY-SA 4.0
2018-12-07T13:39:01.177Z
@coobit think of total value as the "total revenue" for consumer, and net value as the consumer's "profit"
Herr K.
CC BY-SA 4.0
2018-12-06T20:41:03.957Z
2018-12-06T20:41:03.957Z
Herr K.
<p>I'm trying to refresh my microeconomics knowledge. And I have some "blind spots" I just can't fix.</p>

<p>Let's say we have a monopoly on the market. It's usual goal is to maximize it's profits. The point where <span class="math-container">$MR=MC$</span> will profit maximizing condition. </p>

<p><a href="https://i.sstatic.net/eHMp9.jpg" rel="nofollow noreferrer"><img src="https://i.sstatic.net/eHMp9.jpg" alt="enter image description here"></a></p>

<p>What is <strong>value</strong> in this context? 
I mean, the good <span class="math-container">$Q$</span> is being Demanded by customers so value concept should be assigned to it, right? Is there a "value curve" or "marginal value curve" for such charts? Or <strong>value</strong> is <strong>utility</strong>, or <strong>benefit</strong>? </p>

<p>I'm confused about the usage of those terms.</p>

<microeconomics><value>
What is value in the context of microeconomic analys for case of monopoly profit maximization
coobit
# What is value in the context of microeconomic analys for case of monopoly profit maximization

(Asked by: username_0 on 2018-12-06)

I'm trying to refresh my microeconomics knowledge. And I have some "blind spots" I just can't fix.

Let's say we have a monopoly on the market. It's usual goal is to maximize it's profits. The point where $MR=MC$ will profit maximizing condition.

[![enter image description here](https://i.sstatic.net/eHMp9.jpg)](https://i.sstatic.net/eHMp9.jpg)

What is **value** in this context?
I mean, the good $Q$ is being Demanded by customers so value concept should be assigned to it, right? Is there a "value curve" or "marginal value curve" for such charts? Or **value** is **utility**, or **benefit**?

I'm confused about the usage of those terms.

**Tags:** microeconomics, value

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## 1 answers

### Answer by username_1 on 2018-12-06. Score: 1

The demand curve represent the marginal value that consumers put on a good. That is, the marginal value for the $Q$-th unit of the good is the height of the demand curve at $Q$.

The total value from consuming $Q$ units of the good is therefore the area under the demand curve from $0$ to $Q$.

The net value (i.e. net of cost) from consuming $Q$ units of the good is consumer surplus, which equals total value (defined in the previous paragraph) minus total cost (represented by the sum of the two shaded rectangles in your graph).

> **Comments:**
> **username_0**: Thanks for clearing thing up a bit. But what do you mean when writing *net value (i.e. net of cost)*? Consumer net value is equal to consumer cost? I dont' get that.  
> **username_1**: @coobit think of total value as the "total revenue" for consumer, and net value as the consumer's "profit"  

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