Economic efficiency is achieved when there is a market outcome in which the marginal benefit to consumers of the last unit produced is equal to its marginal cost of production and
A)economic surplus plus consumer surplus equals producer surplus.
B)consumer surplus plus producer surplus is maximized.
C)economic surplus is minimized.
D)the difference between consumer surplus and producer surplus is maximized.

Question

Quizplus · Accepted Answer

Economic efficiency is achieved when the market produces at the point where the marginal benefit to consumers (measured by the price they are willing to pay) equals the marginal cost to producers. This is the point where total surplus (consumer surplus + producer surplus) is maximized. Therefore, choice B is the correct answer as it states that consumer surplus plus producer surplus is maximized.

Economic Efficiency Is Achieved When There Is a Market Outcome