Economic efficiency is defined as a market outcome in which the marginal benefit to consumers of the last unit produced is equal to the marginal cost of production, and in which
A)the sum of consumer surplus and producer surplus is at a maximum.
B)economic surplus is minimized.
C)the sum of the benefits to firms is equal to the sum of the benefits to consumers.
D)the sum of consumer surplus and producer surplus is minimized.

Question

Quizplus · Accepted Answer

Economic efficiency is achieved when the net benefit to society is maximized. This occurs when the marginal benefit to consumers of the last unit produced equals the marginal cost of production. At this point, the total surplus (consumer surplus plus producer surplus) is at a maximum, which means that resources are allocated most efficiently.

Economic Efficiency Is Defined as a Market Outcome in Which