-In the above figure, 300,000 purses per month is
A) the efficient amount to produce because consumer surplus is maximized.
B) the efficient amount to produce because the sum of consumer surplus and producer surplus is maximized.
C) an inefficient amount to produce because consumer surplus is not maximized.
D) an inefficient amount to produce because the sum of consumer surplus and producer surplus is not maximized.

Question

-In the above figure, 300,000 purses per month is
A) the efficient amount to produce because consumer surplus is maximized. 
B) the efficient amount to produce because the sum of consumer surplus and producer surplus is maximized. 
C) an inefficient amount to produce because consumer surplus is not maximized. 
D) an inefficient amount to produce because the sum of consumer surplus and producer surplus is not maximized.

Quizplus · Accepted Answer

The efficient amount to produce is where the sum of consumer surplus and producer surplus is maximized, indicating optimal resource allocation.

-In the Above Figure, 300,000 Purses Per Month Is