A maximized social surplus in an economy means that ________.
A) the sum of consumer and producer surpluses have the largest possible value
B) each of the consumer surplus, and the producer surplus have their largest possible values
C) it is possible to make some people better off without making any other person worse off
D) there is an even distribution of income among the people in that economy

Question

Quizplus · Accepted Answer

Social surplus is defined as the sum of consumer surplus and producer surplus. Therefore, a maximized social surplus means that the sum of these two values has reached the highest possible level, indicating that the economy is producing goods and services at the most efficient level possible. This also implies that there is no way to re-allocate resources to increase one party's surplus without decreasing the other's, indicating that the economy is Pareto efficient.

A Maximized Social Surplus in an Economy Means That ________