In the long-run equilibrium in perfect competition,consumer surplus is
A) positive.
B) negative.
C) zero.
D) less than producer surplus.

Question

Quizplus · Accepted Answer

In the long-run equilibrium in perfect competition, consumer surplus is positive. This is because in perfect competition, firms maximize their profits by producing at the lowest possible cost, which results in lower prices for consumers. This lower price allows consumers to buy more goods and services than they would be able to at a higher price, resulting in consumer surplus. Therefore, in the long run equilibrium in perfect competition, both consumers and producers are better off than they would be in any other market structure, and consumer surplus is positive.

In the Long-Run Equilibrium in Perfect Competition,consumer Surplus Is