Multiple Choice
Which of the following statements is false?
A) The sum of producer and consumer surplus is maximized when equilibrium is achieved.
B) Any successful effort to keep price from going to equilibrium decreases the sum of producer and consumer surplus in a market.
C) The sum of producer and consumer surplus is maximized when Pareto efficiency is achieved.
D) Consumer surplus is at its maximum when the price of a product is zero.
E) Producer surplus is all that is maximized when Pareto efficiency is achieved.
Correct Answer:
Verified
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