When economists say that market equilibrium is consistent with economic efficiency, they mean
A) the total gains from trade (the combined area of producer and consumer surplus) are smaller than potentially could be the case at a different price and quantity.
B) all units creating more benefit than cost have been produced.
C) some units have been produced that cost more than the benefits they create.
D) consumers and producers have made decisions without properly taking into account the market price.

Question

Quizplus · Accepted Answer

Market equilibrium is efficient because it ensures that all units that provide more benefit than cost are produced, maximizing total surplus.

When Economists Say That Market Equilibrium Is Consistent with Economic