In a perfectly competitive market, consumer surplus typically is

Question

Quizplus · Accepted Answer

In a perfectly competitive market, the equilibrium price is such that it equals the marginal cost of producing the product. Hence, consumers can buy the product at a price that is equal to its cost of production. As a result, consumers can receive additional benefits (consumer surplus) from buying the product, which is the difference between the price they pay and the highest price they are willing to pay. Therefore, consumer surplus is typically positive in a perfectly competitive market.

In a Perfectly Competitive Market, Consumer Surplus Typically Is