-Which of the following occurs when a market is efficient?
A) Production costs equal total benefit.
B) Producers earn the highest income possible.
C) Every consumer has all of the good or service he or she wants.
D) Scarce resources are used to produce the goods and services that people value most highly.
E) Consumer surplus equals producer surplus.

Question

-Which of the following occurs when a market is efficient?
A) Production costs equal total benefit. 
B) Producers earn the highest income possible. 
C) Every consumer has all of the good or service he or she wants. 
D) Scarce resources are used to produce the goods and services that people value most highly. 
E) Consumer surplus equals producer surplus.

Quizplus · Accepted Answer

In an efficient market, resources are allocated in a way that maximizes the value created for society, meaning that the goods and services produced are those that are most highly valued by consumers. This does not necessarily mean that production costs equal total benefit, that producers earn the highest income possible, that every consumer gets all they want, or that consumer surplus equals producer surplus.

-Which of the Following Occurs When a Market Is Efficient