If marginal benefit is equal to marginal cost, then theA) producer surplus is equal to the consumer surplus.B) market has squeezed out total surplus so that it equals zero.C)sum of producer surplus and consumer surplus is as large as possible.D)sum of producer surplus and consumer surplus equals zero.

Answer: Equilibrium in a market occurs where the marginal benefit is equal to the marginal cost. It…

If marginal benefit is equal to marginal cost, then the A) producer surplus is equal to the consumer surplus. B) market has squeezed out total surplus so that it equals zero. C) of producer surplus and consumer surplus is as large as possible. sum D) sum of producer surplus and consumer surplus equals zero.

If marginal benefit is equal to marginal cost, then the A) producer surplus is equal to the consumer surplus. B) market has squeezed out total surplus so that it equals zero. C) of producer surplus and consumer surplus is as large as possible. sum D) sum of producer surplus and consumer surplus equals zero.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter7: Market Efficiency And Welfare

Section: Chapter Questions

Problem 1P

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