When the competitive market is using its resources efficiently, the
A) total amount of consumer surplus is maximized.
B) total amount of producer surplus is maximized.
C) sum of the total amount of consumer surplus plus the total amount of producer surplus is maximized.
D) sum of the total amount of consumer surplus plus the total amount of producer surplus equals zero.

Question

Quizplus · Accepted Answer

In an efficient competitive market, the allocation of resources maximizes the total surplus, which is the sum of consumer and producer surplus.

When the Competitive Market Is Using Its Resources Efficiently, the