When the efficient rate of output is produced in the short run:
A)marginal cost is greater than marginal benefit.
B)the producer surplus is as large as possible.
C)the total surplus is as large as possible.
D)marginal benefit is greater than marginal cost.

Question

Quizplus · Accepted Answer

In the short run, when the efficient rate of output is produced, it means that resources are allocated in the most efficient way possible, maximizing the total surplus, which includes both consumer and producer surplus. This is a fundamental concept in economics, indicating that the market is operating efficiently and welfare is maximized.

When the Efficient Rate of Output Is Produced in the Short