In a market, the sum of producer and consumer surplus is maximized when marginal benefit is greater than marginal cost.

Name: In a market, the sum of producer and consumer surplus is maximized when marginal benefit is greater than marginal cost.
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The sum of producer and consumer surplus is maximized when marginal benefit equals marginal cost, not when one is greater than the other. This equilibrium point ensures the most efficient allocation of resources.

In a Market, the Sum of Producer and Consumer Surplus