When economists describe a market for a specific product as being economically "efficient," what do they mean?
A)Production techniques are such that resources are used in the most technologically efficient manner.
B)Consumption of the product is such that economic surplus is maximized.
C)Production of the product is such that economic surplus is maximized.
D)The quantity of the product produced and consumed is such that the economic surplus is maximized.
E)There are no price controls in place in that market.

Question

Quizplus · Accepted Answer

When economists describe a market for a specific product as being economically "efficient," they mean that the quantity of the product produced and consumed is such that the economic surplus is maximized. This means that the market is operating at its allocatively efficient level, where the marginal benefits of consumption equal the marginal costs of production, resulting in an optimal allocation of resources.

When Economists Describe a Market for a Specific Product as Being