We say that equilibrium in a perfectly competitive market is allocatively efficient because _____
A) the sum of consumer and producer surplus is maximized.
B) the sum of consumer and producer surplus is minimized.
C) the sum of consumer and producer surplus is zero.
D) a consumer can attain the highest possible indifference curve, given his or her budget constraint.
E) producer surplus is zero.
Correct Answer:
Verified
Q166: The combination of producer and consumer surplus
Q167: Exhibit 8.13 Q168: Exhibit 8.13 Q169: Exhibit 8.13 Q170: To achieve allocative efficiency,firms _ Q172: If MC's Hammers,a perfectly competitive firm,finds that Q173: If,at the equilibrium quantity in a market,the Q174: Allocative efficiency occurs in markets when _ Q175: Exhibit 8.13 Q176: In the short run,producer surplus equals _ Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
A)strive to minimize
A)the
A)total
