Question

When a competitive equilibrium is achieved in a market

a. the total benefits to consumers are equal to the total benefits to producers.
b. economic surplus equals the deadweight loss.
c. all individuals are better off than they would be if a price ceiling or price floor were imposed by government.
d. the total net benefit to society is maximized?

Answer 1

The answer for this is Letter D.

An expert in economics says that when the net benefits of all economic businesses are maximized it means the distribution of resources is effective and achieved but there must be one condition to be considered, market’s allocation should be competitive or well functioned.