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Economic Surplus and Efficiency
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Economic Surplus and Efficiency
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5. Consumer and Producer Surplus; Price Ceilings and Floors / Economic Surplus and Efficiency / Problem 7
Problem 7
Why is equilibrium considered the point of maximum efficiency?
A
Because consumer surplus is zero.
B
Because producer surplus is zero.
C
Because marginal benefit equals marginal cost.
D
Because total surplus is minimized.
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