Identify the true statements about economic wellbeing from the following list.Economic wellbeing is:
(i) the sum of consumer surplus and producer surplus
(ii) marginal revenue to the producer minus the average cost to the consumer
(iii) total profit of producers
A)(i) and (ii)
B)(ii) and (iii)
C)(i) and (iii)
D)(i) only

Question

Quizplus · Accepted Answer

Economic wellbeing is defined as the sum of consumer surplus and producer surplus in microeconomics. Marginal revenue to the producer minus the average cost to the consumer is not a correct definition. Total profit of producers is not equivalent to economic wellbeing, as it does not take into account the welfare of consumers. Therefore, only (i) is true.

Identify the True Statements About Economic Wellbeing from the Following