In a well-functioning competitive market, total surplus:
A) can never be negative.
B) is always zero if the market is efficient.
C) can be negative if the market is not in equilibrium.
D) is greater than the sum of consumer and producer surplus.

Question

Quizplus · Accepted Answer

Total surplus in a well-functioning competitive market, which includes both consumer and producer surplus, can never be negative. It represents the total net benefits to society from the production and consumption of the good or service.

In a Well-Functioning Competitive Market, Total Surplus