Asked by
kaitlyn warren
on Nov 17, 2024
Verified
Efficiency in a market is achieved when
A) a social planner intervenes and sets the quantity of output after evaluating buyers' willingness to pay and sellers' costs.
B) the sum of producer surplus and consumer surplus is maximized.
C) all firms are producing the good at the same low cost per unit.
D) no buyer is willing to pay more than the equilibrium price for any unit of the good.
Producer Surplus
The gap between the amount producers are ready to accept for a good and the actual amount they end up receiving.
- Gain an understanding of how market equilibria and disequilibria influence welfare outcomes.
Verified Answer
MP
Learning Objectives
- Gain an understanding of how market equilibria and disequilibria influence welfare outcomes.