Aggregate surplus:
A) is the sum of total willingness to pay and total avoidable costs of production.
B) is minimized under perfect competition.
C) is the sum of consumer and producer surpluses.
D) is equal to zero in the long run.

Question

Quizplus · Accepted Answer

Aggregate surplus is the sum of consumer and producer surpluses. Consumer surplus is the difference between the price that consumers are willing to pay and the actual market price, while producer surplus is the difference between the market price and the lowest price that producers are willing to accept. Therefore, the total surplus in the market is the sum of these two values.

Aggregate Surplus