When economists talk about "optimal outcomes" in the marketplace,they mean that
A)The allocation of resources by the market is perfect.
B)All the consumer desires are satisfied and business profits are maximized.
C)The allocation of resources by the market is likely to be the best possible,given scarce resources and income constraints.
D)Everyone who wants a good or service can have it.

Question

Quizplus · Accepted Answer

Economists recognize that resources are limited and that individuals and businesses face budget constraints. Therefore, the goal is to allocate resources in a way that maximizes overall welfare, taking into account both consumer and producer surplus. The term "optimal outcomes" suggests that the market is likely to achieve the best possible allocation of resources, given these constraints and assuming competition is healthy. However, this does not mean that the allocation is perfect or that everyone will be completely satisfied.

When Economists Talk About "Optimal Outcomes" in the Marketplace,they Mean