When the Efficient Quantity Is Produced

question 21

Multiple Choice

When the efficient quantity is produced

• A)total consumer surplus is zero.
• B)total producer surplus is zero.
• C)consumer surplus exceeds producer surplus by the greatest possible amount.
• D)producer surplus exceeds consumer surplus by the greatest possible amount.
• E)the sum of consumer surplus and producer surplus is maximized.

---

Definitions:

Principal

In agency law, the individual or entity that authorizes an agent to act on their behalf in business transactions.

Agent

An individual or entity authorized to act on behalf of another person or entity in legal or business matters.

Defraud

The act of misleading or deceiving someone typically for financial or personal gain.

Scope of Authority

The extent of powers given to an individual or a body, determined by an agreement, law, or rules governing their actions.