When a market is efficient,the
A) sum of consumer surplus and producer surplus is maximized.
B) deadweight gain is maximized.
C) quantity produced is maximized.
D) marginal benefit of the last unit produced exceeds the marginal cost by as much as possible.
E) total benefit equals the total cost.

Question

Quizplus · Accepted Answer

In an efficient market, resources are allocated in the most effective way, meaning that the sum of consumer surplus and producer surplus is maximized. This reflects the optimal distribution of goods and services to those who value them most.

When a Market Is Efficient,the