Total net benefits gained in a market
A)minus any side payments equals total revenue from producing the good (or,equivalently,total expenditure on the good)
B)is the sum of producer and consumer surplus in that market
C)is the difference between consumer surplus and producer surplus in that market
D)are maximized when the market price equals zero
E)always exceeds the sum of total expenditure on the good and the total cost of providing it

Question

Quizplus · Accepted Answer

Total net benefits gained in a market is the sum of producer and consumer surplus. This reflects the value that consumers receive from consuming the good and the profit that producers earn from producing it. Side payments, total expenditure, and total cost are not factors that determine total net benefits. Zero price would not necessarily maximize net benefits.

Total Net Benefits Gained in a Market