At the equilibrium point in a perfectly competitive industry, the total surplus (the sum of the consumer surplus and producer surplus) will be at its maximum.

Question

Quizplus · Accepted Answer

At equilibrium, the market is efficiently allocating resources and producing the optimal quantity of goods at the lowest possible cost. This results in the highest possible level of total surplus, as both consumers and producers are able to maximize their individual surpluses.

At the Equilibrium Point in a Perfectly Competitive Industry, the Total