Aggregate surplus:
A) equals consumers' total willingness to pay for a good less firms' total avoidable cost of production.
B) equals consumers' total willingness to pay for a good plus firms' total avoidable cost of production.
C) captures the total benefit created by the production and consumption of the good.
D) captures the total cost created by the production and consumption of the good.

Question

Quizplus · Accepted Answer

Aggregate surplus equals the total benefit created by the production and consumption of the good which is consumers' total willingness to pay for a good less firms' total avoidable cost of production.

Aggregate Surplus