If a competitive market is producing at the efficient quantity, _________.

Question

Quizplus · Accepted Answer

When a competitive market is producing at the efficient quantity, total surplus is maximized. This is because at this point, the marginal benefit to consumers is equal to the marginal cost to producers, resulting in the greatest possible satisfaction for both parties. Therefore, there is no deadweight loss and the quantity produced is at equilibrium, making choice A and B incorrect. Choice C is also incorrect because total surplus is not minimized but actually maximized.

If a Competitive Market Is Producing at the Efficient Quantity