Question

30.When a market is efficient the

A.

quantity produced is maximized.

B.

deadweight gain is maximized.

C.

marginal benefit of the last unit produced exceeds the marginal cost by as much as possible.

D.

total benefit equals the total cost.

E.

sum of consumer surplus and producer surplus is maximized.

Answer 1

At the efficient quantity MSB = MSC

correct answer is E . sum of consumer surplus and producer surplus is maximized.