Aggregate surplus
A) Is minimized under perfect competition
B) Is the difference between consumer and producer surpluses
C) Is the sum of consumer and producer surpluses
D) A and B

Question

Quizplus · Accepted Answer

Aggregate surplus is the total benefit gained by all parties involved in a transaction or market, which includes both consumer surplus and producer surplus. Therefore, option C is the correct choice. Option A is incorrect because in perfect competition, the market is efficient but not necessarily achieving the minimum level of aggregate surplus. Option B is incorrect because it only represents the difference between two components of aggregate surplus, but not the total itself.

Aggregate Surplus