Aggregate surplus:
A) is minimized under perfect competition.
B) is the difference between consumer and producer surpluses.
C) is the sum of consumer and producer surpluses.
D) will never be positive in the long run.

Question

Quizplus · Accepted Answer

Aggregate surplus is the sum of consumer and producer surpluses in a market. It represents the overall benefit to society from the production and consumption of a good or service. This concept is often used in welfare economics to determine the efficiency of an allocation of resources. Perfect competition may result in maximum efficiency, but it is not necessary for aggregate surplus to be positive.

Aggregate Surplus