We can say that the allocation of resources is efficient if:
A)producer surplus is maximised
B)consumer surplus is maximised
C)total surplus is maximised
D)none of the above is correct

Question

Quizplus · Accepted Answer

Efficiency in resource allocation occurs when the total surplus, which is the sum of producer and consumer surplus, is maximized. This means that the benefits to both producers and consumers are maximized, and there is no other allocation of resources that can increase overall welfare. Therefore, choice (C) is the correct answer. Choices (A) and (B) only focus on maximizing the surplus of one group and do not necessarily lead to overall efficiency. Choice (D) is incorrect, as one of the choices is correct.

We Can Say That the Allocation of Resources Is Efficient