Social surplus is maximized in a(n)________.

Question

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In a perfectly competitive market, there is a large number of buyers and sellers, and the market price is determined by the forces of supply and demand. This results in an efficient allocation of resources and a maximization of social surplus, which is the sum of producer surplus and consumer surplus. In contrast, monopolies, monopolistically competitive markets, and oligopoly markets are associated with market power and barriers to entry, which can result in lower social surplus.

Social Surplus Is Maximized in A(n)________