Final answer:
When a competitive market maximizes economic surplus, it means the market is producing and consuming the optimal amount of each good and service. In the context of the tablet computer market, the equilibrium price and quantity represent the efficient allocation of resources. This leads to maximum economic surplus.
Step-by-step explanation:
When a competitive market maximizes economic surplus, it implies that the market is producing and consuming the optimal amount of each good and service. This is known as allocative efficiency, which means that resources are allocated to produce the goods and services that society values the most.
In the context of the tablet computer market mentioned in the reference, if the market is operating efficiently, the equilibrium price of $80 and the equilibrium quantity of 28 million tablets represent the most efficient allocation of resources. This is because the price reflects the value consumers are willing to pay for the tablets, and the quantity produced matches the quantity demanded.
Overall, when a competitive market achieves allocative efficiency, it leads to maximum economic surplus by maximizing consumer surplus, producer surplus, and social surplus.