Which of the following is not a reason why the market outcomes maximizes total surplus?a. The market outcome assures that the producers that supply the good are the lowest cost producersAt the market outcome every unit that has a marginal benefit to consumers that is at least as large as the marginal cost of productionb.is produced.c. The market outcome maximizes the average consumer surplus.d. The market outcome assures that the good is allocated to the consumers with the highest willingness to pay

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Asked Feb 3, 2020
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Which of the following is not a reason why the market outcomes maximizes total surplus?
a. The market outcome assures that the producers that supply the good are the lowest cost producers
At the market outcome every unit that has a marginal benefit to consumers that is at least as large as the marginal cost of production
b.
is produced.
c. The market outcome maximizes the average consumer surplus.
d. The market outcome assures that the good is allocated to the consumers with the highest willingness to pay
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Which of the following is not a reason why the market outcomes maximizes total surplus? a. The market outcome assures that the producers that supply the good are the lowest cost producers At the market outcome every unit that has a marginal benefit to consumers that is at least as large as the marginal cost of production b. is produced. c. The market outcome maximizes the average consumer surplus. d. The market outcome assures that the good is allocated to the consumers with the highest willingness to pay

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Expert Answer

Step 1: Definition

Producer surplus: Producer surplus is the difference between the amount that producers are willingness to supply commodities and the amount that actually receive from the trade.

 

Consumer s...

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