A market equilibrium is only efficient if:
A)the consumer surplus and the producer surplus associated with a given transaction are equal.
B)consumer surplus and producer surplus are both zero.
C)all relevant costs and benefits are reflected in the market supply and demand curves.
D)output is distributed equitably among consumers.

Question

Quizplus · Accepted Answer

A market equilibrium is only efficient if the market supply and demand curves capture all of the relevant costs and benefits associated with production and consumption.

A Market Equilibrium Is Only Efficient If