An efficient equilibrium occurs whenever:
A) social surplus is maximized.
B) quantity demanded equals quantity supplied.
C) there is a negative externality in the market.
D) there is a positive externality in the market.

Question

Quizplus · Accepted Answer

An efficient equilibrium is achieved when social surplus, which is the sum of consumer and producer surplus, is maximized. This indicates that resources are allocated in the most efficient way possible.

An Efficient Equilibrium Occurs Whenever