If an allocation of resources is efficient,then
A)consumer surplus is maximized.
B)producer surplus is maximized.
C)all potential gains from trade among buyers are sellers are being realized.
D)the allocation is necessarily equitable as well.

Question

Quizplus · Accepted Answer

An efficient allocation of resources is one where all potential gains from trade among buyers and sellers are being realized. This means that resources are being used in the most productive way possible, resulting in maximum economic welfare for society as a whole. It does not necessarily mean that consumer or producer surplus is maximized, nor does it guarantee an equitable allocation of resources.

If an Allocation of Resources Is Efficient,then