-The above figure shows the marginal social benefit and marginal social cost curves of doughnuts in the nation of Kaffenia. At Kaffenia's efficient quantity of doughnuts
A) total consumer surplus is zero.
B) total producer surplus is zero.
C) consumer surplus exceeds producer surplus by the greatest possible amount.
D) the sum of consumer surplus and producer surplus is maximized.

Question

-The above figure shows the marginal social benefit and marginal social cost curves of doughnuts in the nation of Kaffenia. At Kaffenia's efficient quantity of doughnuts
A) total consumer surplus is zero. 
B) total producer surplus is zero. 
C) consumer surplus exceeds producer surplus by the greatest possible amount. 
D) the sum of consumer surplus and producer surplus is maximized.

Quizplus · Accepted Answer

At the efficient quantity, the sum of consumer surplus and producer surplus is maximized because this is the point where marginal social benefit equals marginal social cost, leading to maximum total welfare.

-The Above Figure Shows the Marginal Social Benefit and Marginal