Markets fail to maximize total surplus when:
A)individual choices impose costs or benefits on others.
B)society's choices impose costs or benefits on other societies.
C)all costs and benefits are received by participants in transactions.
D)producer surplus is not exactly equal to consumer surplus.

Question

Quizplus · Accepted Answer

Markets fail to maximize total surplus when individual choices impose external costs or benefits on others, leading to market failures such as externalities.

Markets Fail to Maximize Total Surplus When