Aggregate surplus
A) Equals consumers' total willingness to pay for a good less firms' total avoidable cost of production
B) Equals consumers' total willingness to pay for a good plus firms' total avoidable cost of production
C) Captures the net benefit created by the production and consumption of the good
D) A and C

Question

Quizplus · Accepted Answer

Aggregate surplus captures the net benefit created by the production and consumption of the good. It is calculated as consumers' total willingness to pay for a good less firms' total avoidable cost of production. Therefore, options A and C are both correct.

Aggregate Surplus