When society achieves economic efficiency, it is:
A) maximizing producer surplus but not consumer surplus.
B) maximizing consumer surplus but not producer surplus.
C) producing a specified amount of output at the highest possible cost.
D) producing a specified amount of output at the lowest possible cost.

Question

Quizplus · Accepted Answer

Economic efficiency is achieved when a society produces goods and services at the lowest possible cost, maximizing the total surplus (sum of consumer and producer surplus).

When Society Achieves Economic Efficiency, It Is