If there is a market outcome in which the marginal benefit to consumers of the last unit produced is equal to its marginal cost of production and consumer surplus plus producer surplus is maximized, then
A)maximum deadweight loss occurs.
B)economic efficiency is achieved.
C)profits are maximized.
D)costs are minimized.

Question

Quizplus · Accepted Answer

When the marginal benefit equals the marginal cost, economic efficiency is achieved. This means that resources are being allocated in the best possible way to maximize overall welfare. Additionally, when consumer surplus and producer surplus are maximized, it indicates that the market is working efficiently to create value for both buyers and sellers. Therefore, B is the correct answer. A, C, and D are all incorrect because they do not necessarily indicate that economic efficiency has been achieved.

If There Is a Market Outcome in Which the Marginal