When attempting to correct cases of "market failure", economists usually seek policies that maximize
A)the sum of consumer and producer surplus.
B)consumer surplus, not producer surplus.
C)producer surplus, not consumer surplus.
D)the difference between consumer and producer surplus.

Question

Quizplus · Accepted Answer

Maximizing the sum of consumer and producer surplus represents the most efficient allocation of resources and is commonly seen as the goal of economic policies aimed at correcting market failures. By maximizing the total surplus, policymakers can achieve a Pareto efficient allocation, where no one can be made better off without making someone else worse off. It ensures that resources are allocated to their highest-valued uses, achieving the greatest possible economic welfare.

When Attempting to Correct Cases of "Market Failure", Economists Usually